Exhibit 99.1

Risk and Capital Management – Pillar 3

OBJECTIVE		4
KEY INDICATORS		4
1	RISK AND CAPITAL MANAGEMENT	5
1.1	Risk Appetite	6
1.2	Risk Culture	7
1.3	Risk and Capital Governance	7
2	CAPITAL	8
2.1	Capital Management	8
2.2	Capital Adequacy Assessment	8
2.3	Capital Requirements in Place and in Progress	9
2.4	Capital Composition	11
2.5	Risk-Weighted Asset (RWA)	13
	Risk-Weighted Assets for Credit Risk (RWACPAD)	13
	Risk-Weighted Assets for Market Risk (RWAMINT)	14
	Risk-Weighted Assets for Operational Risk (RWAOPAD)	14
2.6	Additional Common Equity Tier I	15
2.7	Capital Adequacy	16
2.8	Leverage Ratio	18
3	BALANCE SHEET	19
	Balance Sheet	19
	Institutions that comprises the Financial Statements of Itaú Unibanco Holding	21
	Material entities	22
4	INVESTMENTS IN OTHER ENTITIES NOT CLASSIFIED IN THE TRADING BOOK	23
5	CREDIT RISK	24
5.1	Framework and Treatment	24
5.2	Credit Portfolio Analysis	25
	Operations with Credit Granting Characteristics by Brazil Geographic Regions and by Countries	25
	Operations with Credit Granting Characteristics by Economic Sector	26
	Remaining maturity of loan transactions	27
	Concentration on the Major Debtors	27
	Overdue Amounts	28
	Allowance for Loan Losses	28
	Mitigating Instruments	29
	Counterparty Credit Risk	30
	Acquisitions, Sale or Transfer of Financial Assets	32
	Operations of Securitization	34
	Credit Derivatives	35
6	MARKET RISK	36
6.1	Framework and Treatment	36
6.2	Portfolio Analysis	38
	Interest rate risk in the non-trading book	38
	Evolution of the Trading Portfolio	39
	Evolution of the Derivatives Portfolio	39
	VaR - Consolidated Itaú Unibanco	40
	VaR and Stresses VaR Internal Model – Regulatory Portfolio	41
	Stress Testing	42
	Backtesting	42
	Pricing of Financial Instruments	42

Itaú Unibanco

Risk and Capital Management – Pillar 3

7	OPERATIONAL RISK	43
7.1	Framework and Treatment	43
7.2	Crisis Management and Business Continuity	44
7.3	Independent Validation of Risk Models	45
8	LIQUIDITY RISK	46
8.1	Framework and Treatment	46
8.2	Liquidity Coverage Ratio (LCR)	47
8.3	Primary Sources of Funding	48
9	OTHER RISKS	49
	Insurance products, pension plans and premium bonds risks	49
	Social and Environmental Risk	49
	Regulatory Risk	50
	Model Risk	50
	Country Risk	50
	Business and Strategy Risk	51
	Reputational Risk	51
10	ENTERPRISE RISK MANAGEMENT AND ALIGNMENT OF INCENTIVES	53
	Stress Test	53
	Risk-adjusted Compensation	53
11	APPENDIX I	54
12	GLOSSARIES	57
12.1	Glossary of Acronyms	57
12.2	Glossary of Regulations	59

Itaú Unibanco

Risk and Capital Management – Pillar 3

Objective

This document presents Itaú Unibanco Holding S.A. (Itaú Unibanco) information required by the Central Bank of Brazil (BACEN) through Circular 3,678 and subsequent amendments, which address the disclosure of information on risks management, calculation of risk-weighted assets (RWA), and calculation of the Total Capital (“Patrimônio de Referência” - PR), in accordance with Itaú Unibanco’s institutional standards.

For further information than the contained on this document, please visit http://www.itau.com.br/investor-relations.

The information available in the website http://www.itau.com.br/investor-relations and referred to in this document is supplementary to this publication, and there were no important amendments between the dates of its disclosure and the base date of this report.

Key indicators

Itaú Unibanco’s risk and capital management focuses on maintaining the institution in line with the risk strategy approved by the Board of Directors. The key indicators based on the Prudential Consolidation, on June 30, 2017, are summarized below.

Common Equity Tier I Ratio	Tier I Ratio	Total Capital Ratio
15.7%	15.7%	18.4%
March 31, 2017: 15.4%	March 31, 2017: 15.4%	March 31, 2017: 18.1%
Common Equity Tier I	Tier I	Total Capital
R$113,816 million	R$ 113,865 million	R$ 133,654 million
March 31, 2017: R$ 110,454 million	March 31, 2017: R$ 110,608 million	March 31, 2017: R$ 130,394 million

RWA	Credit Risk Exposure
R$ 724,483 million	R$ 642,616 million
March 31, 2017: R$ 719,150 million	March 31, 2017: R$ 642,700 million

4

Itaú Unibanco

Risk and Capital Management – Pillar 3

1 Risk Management

To assume and manage risks is one of the activities of Itaú Unibanco. For this reason, the institution must have clearly established risk management objectives. In this context, the risk appetite defines the nature and the level of risks acceptable for the institution, while the risk culture guides the attitudes required to manage them. Itaú Unibanco seeks to maintain robust and company-wide risk management processes to serve as a basis for its strategic decisions intended to ensure business sustainability.

These processes are in line with the guidelines of the Board of Directors and Executives who, through corporate bodies, define the institution’s global objectives, which are then translated into targets and thresholds for the business units that manage risks. Control and capital management units, in turn, support Itaú Unibanco’s management through the processes of analysis and monitoring capital and risk assessment processes.

The principles that provide risk management and risk appetite fundamentals, as well as guidelines regarding the actions taken by Itaú Unibanco’s employees in their daily routines are as follows:

· Sustainability and customer satisfaction: the vision of Itaú Unibanco is to be a leading bank in sustainable performance and customer satisfaction. For this reason, the institution is concerned about creating shared values for employees, customers, shareholders and society to ensure the longevity of the business. Itaú Unibanco is concerned about doing business that is good for customers and for the institution;

· Risk Culture: the institution’s risk culture goes beyond policies, procedures and processes, strengthening the employees’ individual and collective responsibility to do the right thing, at the right time and in the right way, with respect for ethical business. The Risk Culture is described in item 1.2 “Risk Culture”;

· Price for Risk: Itaú Unibanco operates and assumes risks in business that it knows and understands, avoids unknown risks or risks that provide no competitive advantages, and carefully assesses risk-return ratios;

· Diversification: the institution has low appetite for volatility in its results. Accordingly, it operates with a diversified base of customers, products and business, seeking risk diversification and giving priority to low-risk transactions;

· Operational excellence: Itaú Unibanco intends to provide agility, as well as a robust and stable infrastructure, so as to offer high quality services;

· Ethics and respect for regulations: at Itaú Unibanco, ethics is non-negotiable. For this reason, the institution promotes an institutional environment of integrity, educating its employees to cultivate ethical relationships and businesses, as well as respecting the norms, and therefore caring for the institution’s reputation.

On February 23, 2017, BACEN published Resolution CMN 4,557, which established the structure of risk and capital management. The resolution highlights are the implementation of a continuous and integrated risk management framework; the requirements for the definition of the Risk Appetite Statement (RAS) and the stress test program; the establishment of a Risk Committee; the indication, before BACEN, of the Chief Risk Officer (CRO); and the CRO’s roles, responsibilities and independence requirements. The new standard enters into force 180 days after the date of publication, and revokes CMN Resolutions 3,380, 3,464, 3,721, 3,988, and 4,090, which established the implementation of operational, market, credit, capital and liquidity risks management, respectively.

Itaú Unibanco is mapping the actions required to comply with the Resolution. However, up to the present moment, no significant impacts have been identified.

5

Itaú Unibanco

Risk and Capital Management – Pillar 3

1.1 Risk Appetite

In 2016, Itaú Unibanco reviewed its risk appetite policy, which was established and approved by the Board of Directors and guides the institution’s business strategy. The bank’s risk appetite is grounded on the following declaration of the Board of Directors:

“We are a universal bank, operating predominantly in Latin America. Supported by our risk culture, we operate based on rigorous ethical and regulatory compliance standards, seeking high and growing results, with low volatility, by means of the long-lasting relationship with clients, correctly pricing risks, well-distributed fund-raising and proper use of capital.”

Based on this declaration, the bank established five dimensions, each of which comprising a set of metrics associated with the key risks involved, combining complementary measurements and seeking a comprehensive view of its exposure:

· Capitalization: establishes that Itaú Unibanco should have sufficient capital to protect against a serious recession or stress events without the need to adjust its capital structure under adverse circumstances. It is monitored by following up on the bank’s capital ratios in usual or stress situations, and debt issue ratings.

· Liquidity: establishes that the institution’s liquidity should be able to support long stress periods. It is monitored by following up on liquidity ratios.

· Composition of results: establishes that business will mainly focus on Latin America, where Itaú Unibanco will have a diversified range of customers and products, with low appetite for results volatility and high risk. This dimension includes business and profitability, as well as market and credit risks aspects. The metrics monitored by the bank seek to ensure, by means of exposure concentration limits such as, for example, industry sectors, quality of counterparties, countries and geographic regions and risk factors, a suitable composition of the bank’s portfolios, aiming at low volatility of results and business sustainability.

· Operational risk: focuses on controlling operational risk events that may adversely impact the bank’s business strategy and operations. This control is carried out by monitoring key operational risk events and incurred losses.

· Reputation: deals with risks that may impact brand value and the institution’s reputation before its customers, employees, regulators, investors and the general public. In this dimension, risks are monitored by following up on customers’ satisfaction or dissatisfaction, media exposure and observation of the institution’s conduct.

The Board of Directors is responsible for approving risk appetite guidelines and limits, performing its activities with the support of the Risk and Capital Management Committee (CGRC) and the CRO.

Metrics are regularly monitored and must comply with the limits defined. Monitoring is reported to the risk commissions and to the Board of Directors, guiding the use of preventive measures to ensure that exposures are within the limits provided and in line with the bank’s strategy.

6

Itaú Unibanco

Risk and Capital Management – Pillar 3

1.2 Risk Culture

Aiming at strengthening its values and aligning the behavior of its employees with risk management guidelines, the institution adopts several initiatives to disseminate its risk culture. Itaú Unibanco’s Risk Culture is based on four basic principles: conscious risk taking, discussion about and actions on the institution’s risks, and each and everyone’s responsibility for risk management.

These principles connect Itaú Unibanco’s guidelines and help employees to consciously understand, identify, measure, manage and mitigate risks.

In addition to the bank’s policies, procedures and processes, the risk culture strengthens the employees’ individual and collective responsibility for managing the risks connected to their individual activities, respecting business management with ethics.

The institution promotes its risk culture by emphasizing a behavior that helps people of all company levels to undertake and manage risks in a conscious way. By disseminating these principles, the institution fosters the understanding and an open discussion about the risks, so that they are kept within the risk appetite levels established, being liable for each employee individually, regardless of their position, area or duties.

Itaú Unibanco also makes some channels available for communication of operating failures, internal or external fraud, conflicts at the workplace, or cases that may result in inconveniences and/or losses for the institution or its customers. All employees or third parties are responsible for informing any problems immediately, as soon as they become aware of a situation.

1.3 Risk and Capital Governance

The Board of Directors is the main body responsible for establishing the guidelines, policies and authority levels regarding risk and capital management. In turn, the Risk and Capital Management Committee (CGRC) provides support to the Board of Directors in the performance of their duties relating to risk and capital management. At the executive level, corporate bodies headed by Itaú Unibanco’s Chief Executive Officer (CEO) are established to manage risks and capital. Their decisions are overseen by the CGRC.

Additionally, the institution has corporate bodies that perform delegated duties in the risk and capital management, and that are headed by the Vice-President of the Risk and Finance Control and Management Area (ACGRF).

Furthermore, to support this structure, ACGRF is structured with specialized departments. The objective is provide independent and centralized management of the institution’s risks and capital, and ensuring the accordance with established rules and procedures.

A detailed description of the structure can be found on the Consolidated Annual Report, section “Our Risk Management”. The Consolidated Annual Report can be found in the website www.itau.com.br/investor-relations, section “Financial Information”.

Itaú Unibanco’s risk management organizational structure complies with Brazilian and international regulations in place and is aligned with the market’s best practices. Responsibilities for risk management at Itaú Unibanco are structured according to the concept of three lines of defense, namely:

· in the first line of defense, the business and corporate support areas manage risks they give rise to, by identifying, assessing, controlling and reporting such risks;

· in the second line of defense, an independent unit provides central control, so as to ensure that Itaú Unibanco’s risk is managed according to the risk appetite and established policies and procedures. This centralized control provides the Board and executives with a global overview of Itaú Unibanco’s exposure, to ensure correct and speedy corporate decisions;

· in the third line of defense, internal audit provides an independent assessment of the institution’s activities, so that senior management can see that controls are adequate, risk management is effective and institutional standards and regulatory requirements are being complied with.

Itaú Unibanco uses robust automated systems for full compliance with capital regulations, as well as for measuring risks in accordance with the regulatory determinations and models in place. It also monitors adherence to the qualitative and quantitative regulators’ minimum capital and risk management requirements.

7

Itaú Unibanco

Risk and Capital Management – Pillar 3

2 Capital

2.1 Capital Management

The Board of Directors is the main body in the Itaú Unibanco’s capital management and it is responsible for approving the capital management institutional policy and guidelines regarding the institution’s capitalization level. The Board is also responsible for the full approval of ICAAP (Internal Capital Adequacy Assessment Process) report, a process which is intended to assess the adequacy of Itaú Unibanco’s capital.

At the executive level, corporate bodies are responsible for approving risk assessment and capital calculation methodologies, as well as reviewing, monitoring and recommending capital related documents and topics to the Board of Directors.

In order to provide the Board with data required, management reports are prepared to inform the institution’s capital adequacy, as well as capital level forecasts under usual and stress conditions. There is a structure in place for coordination and consolidation of information and related processes, which are all subject to verification by the independent validation, internal controls and audit areas.

The guidelines of the institutional capital management policy can be accessed at www.itau.com.br/investor-relations, under Corporate Governance, Regulations and Policies, “Public Access Report – Capital Management”.

2.2 Capital Adequacy Assessment

For its capital adequacy assessment process, the annual Itaú Unibanco’s procedure is as follows:

· Identification of the risks to which the institution is exposed and analysis of their materiality;

· Assessment of the need for capital to cover the material risks;

· Development of methods for quantifying additional capital;

· Quantification of capital and internal capital adequacy assessment;

· Capital and Contingency Plan;

· Submission of report to BACEN.

By adopting a prospective stance regarding capital management, Itaú Unibanco implemented its capital management structure and its ICAAP in order to comply with National Monetary Council (CMN) Resolution 3,988, BACEN Circular 3,547 and BACEN Circular Letter 3,774.

In the ICAAP, one important element is stress testing. This process provides for assessing capital under adverse scenarios, approved annually by the Board of Directors, and its purpose is to measure and confirm that, even in severe adverse conditions, the institution would have adequate levels of capital that would not cause restrictions to the development of its activities.

The result of the last ICAAP – dated as of December 2016 – showed that, in addition to having enough capital to face all material risks, Itaú Unibanco has a significant cushion, thus ensuring the soundness of its equity position.

8

Itaú Unibanco

Risk and Capital Management – Pillar 3

2.3 Capital Requirements in Place and in Progress

Itaú Unibanco’s minimum capital requirements follow the set of resolutions⁽²⁾ and circulars disclosed by BACEN that implemented, in Brazil, the global capital requirement standards known as Basel III. These are expressed as ratios of the capital available – stated by the Total Capital, composed by the Tier I Capital (which comprises the Common Equity and Additional Tier I Capital) and Tier II Capital – and the risk-weighted assets (RWA).

The Total Capital, Tier I Capital and Common Equity Tier I Capital ratios are calculated on a consolidated basis, applied to institutions included in Prudential Conglomerate⁽³⁾, which comprises not only financial institutions but also collective financing plans (“consórcios”), payment entities, factoring companies or companies that directly or indirectly assume credit risk, and investment funds in which the institution retains substantially all risks and rewards.

For purposes of calculating these minimum capital requirements, the total RWA is determined as the sum of the risk-weighted asset amounts for credit, market, and operational risks. Itaú Unibanco uses standardized approaches to calculate credit and operational risk-weighted asset amounts.

From September 1st, 2016, BACEN has authorized Itaú Unibanco to use internal market risk models to determine the total amount of regulatory capital (RWA_MINT), replacing the portion RWA_MPAD, as set out in BACEN Circular 3,646.

The standardized approach continues to be used for external units. Accordingly, use of the internal models does not apply to the following units: Argentina, Chile, Itaú BBA International, Itaú BBA Colombia, Paraguay and Uruguay.

Credit, market and operational risks approaches are treated as described in section “2.5 Risk-Weighted Assets (RWA)”.

From January 1st, 2017 to December 31st, 2017, the minimum Total Capital ratio required is 9.25%, and following the schedule for a gradual reduction, it will be 8% on January 1st, 2019.

Beyond the minimum requirement, the BACEN rules call for Additional Common Equity Tier I Capital (ACP), corresponding to the sum of the components ACP_Conservation, ACP_{Countercyclical} and ACP_Systemic, which, in conjunction with the requirements mentioned, increase capital requirement over time. The amount of each component and the minimum regulatory requirements, as provided for in CMN Resolution 4,193, are described in the table below.

Basel III also redefined the requirements for qualifying the instruments eligible for Tier I and Tier II Capital, which in Brazil are regulated by CMN Resolution 4,192. This reform included a phase-out schedule for instruments currently included in capital, which were issued before the rule came into effect and which do not fully meet the new requirements.

The table below presents the schedule of implementation of Basel III rules in Brazil, as defined by BACEN. The information correspond to the percentages of Itaú Unibanco’s risk weighted assets.

Basel III - Implementation Schedule	From January 1st
	2015			2016			2017			2018			2019
Common Equity Tier I		4.5	%		4.5	%		4.5	%		4.5	%		4.5	%
Tier I		6.0	%		6.0	%		6.0	%		6.0	%		6.0	%
Total Capital		11	%		9.875	%		9.25	%		8.625	%		8.0	%
Additional Common Equity Tier I (ACP)		0.0	%		0.625	%		1.50	%		2.375	%		3.5	%
conservation		0	%		0.625	%		1.25	%		1.875	%		2.5	%
countercyclical (1)		0	%		0	%		0	%		0	%		0	%
systemic		0	%		0	%		0.25	%		0.5	%		1.0	%
Common Equity Tier I + ACP		4.5	%		5.125	%		6.0	%		6.875	%		8.0	%
Total Capital + ACP		11.0	%		10.5	%		10.75	%		11.0	%		11.5	%
Prudential adjustments deductions		40	%		60	%		80	%		100	%		100	%

⁽¹⁾ The countercyclical capital buffer is fixed by the Financial Stability Committee (Comef) based on discussions about the pace of credit expansion (BACEN Communication No. 30.371), and currently is set to zero. Should the requirement increase, the new percentage takes effect twelve months after the announcement.

⁽²⁾ The standards that implemented the Basel III rules in Brazil were disclosed on March 1, 2013 through Resolutions No. 4,192 to No. 4,195 of the National Monetary Council (CMN) (Resolution No. 4,195 was revoked by Resolution No. 4,280), together with 15 Circulars published by BACEN on March 4, 2013, as amended.

⁽³⁾Further details of Prudential Conglomerate can be found in BACEN Circular No. 3,701, CMN Resolution No. 4,280 or in the link: http://www.bcb.gov.br/?BRPRUDENTIALFINREG.

9

Itaú Unibanco

Risk and Capital Management – Pillar 3

In addition to the minimum capital requirements, BACEN Circular 3,748 has been in force since the fourth quarter of 2015. It incorporates the Leverage Ratio in the Basel III framework in Brazil. More details are given in section “2.8 Leverage Ratio” in this report.

Also, in March 2015, Circular BACEN 3,751 came into force. It provides for the calculation of relevant indicators to identify Global Systemically Important Banks (G-SIBs) among financial institutions in Brazil. Following the Basel methodology for identifying G-SIBs, Itaú Unibanco’s score was 29 at 2015. A institution is considered G-SIB whether its score reaches at least 130. Information on the values of the G-SIBs indicators can been found at www.itau.com.br/investor-relations, section “Corporate Governance”, “Global Systemically Important Banks”.

The compliance of BACEN with the standards recommended by the Basel Committee was assessed at the end of 2013, under the Regulatory Consistency Assessment Programme (RCAP)⁽⁴⁾. The rules effective in Brazil were considered compliant—pursuant to the Bank for International Settlements (BIS), Brazil is a compliant jurisdiction—i.e., the capital standards established in Brazil are also consistent with the internationally accepted minimum requirements. The pointed out discrepancies were considered immaterial.

Minimum capital requirement for Insurance

In July 2015, the National Council of Private Insurance (CNSP) issued CNSP Resolution 321 and subsequent amendments, which, among other things, deals with the minimum capital requirements for underwriting, credit, operating and market risks for insurers, open private pension entities, premium bonds companies and reinsurers.

⁽⁴⁾ Regulatory Consistency Assessment Programme (RCAP). Assessment of Basel III regulations in Brazil, December 2013, updated in March 2017 with no additional material points.

10

Itaú Unibanco

Risk and Capital Management – Pillar 3

2.4 Capital Composition

The Total Capital, used to monitor compliance with the operational limits imposed by BACEN, is the sum of three items, namely:

· Common Equity Tier I: sum of social capital, reserves and retained earnings, less deductions and prudential adjustment;

· Additional Tier I Capital: consists of instruments of a perpetual nature, which meet eligibility requirements. Together with Common Equity Tier I it makes up Tier I;

· Tier II: consists of subordinated debt instruments with defined maturity dates that meet eligibility requirements. Together with Common Equity Tier I and Additional Tier I Capital, it makes up Total Capital.

The table below presents the composition of the referential equity and its components (Common Equity Tier I, Additional Tier I Capital and Tier II Capital), taking into consideration their respective prudential adjustments, as required by current regulations.

Composition of Referential Equity	R$ million
	06/30/2017			03/31/2017			06/30/2016
Stockholders’ equity Itaú Unibanco Holding S.A. (Consolidated)		118,379			114,897			110,587
Non-controlling interest in subsidiaries		11,746			11,391			13,241
Changes in ownership interest in a subsidiary in capital transactions		2,150			2,486			3,046
Consolidated Stockholders’ Equity (BACEN)		132,275			128,774			126,874
Common Equity Tier I prudential adjustments		(18,459	)		(18,320	)		(15,410	)
Common Equity Tier I		113,816			110,454			111,464
Additional Tier I prudential adjustments		49			154			685
Additional Tier I Capital		49			154			685
Tier I (Common Equity Tier I + Additional Tier I Capital)		113,865			110,608			112,149
Instruments eligible to comprise Tier II		19,723			19,723			23,488
Tier II prudential adjustments		66			63			198
Tier II		19,789			19,786			23,686
Reference Equity (Tier I + Tier II)		133,654			130,394			135,835

The most significant prudential adjustments for Itaú Unibanco are shown in the following table. Together, they account for more than 90% of the prudential adjustments as of June 30, 2017.

Prudential Adjustments	R$ million
	06/30/2017			03/31/2017			06/30/2016			Ref. Appendix I
Goodwill paid upon the acquisition of investments		8,744			9,185			7,780		(e)
Intangible assets		4,458			4,322			2,627		(h)/(i)
Tax credits		5,877			5,428			3,983		(b)
Investments higher than 10% of the capital of companies that are similiar to non-consolidated financial intitutions		-			-			-
Minority shareholders’ primary capital surplus		418			606			1,229
Adjustments related to the market value of derivative financial instruments used to hedge the cash flows of protected items whose mark-to-market adjustments are not recorded in the books		(1,575	)		(1,681	)		(796	)
Others		537			460			587
Total		18,459			18,320			15,410

During the year 2017, Itaú Unibanco bought back R$ 1,282 million of its own shares. These shares are shown as “Treasury Shares”, which showed a balance of R$ (2,571) million as of June 30, 2017. Treasury shares reduce our shareholders’ equity, resulting in a decrease in the capital base.

In this period, the amount of dividends and Interest on capital paid / provided for, which affects Itaú Unibanco’s capital base, was R$ 7,947 million. Dividends are deducted from the institution’s shareholders’ equity, thus reducing its capital base. The interest on capital that is booked directly to income as an expense reduces the institution’s net income, reducing, consequently, the capital base.

More details about Total Capital are given in Appendix I (“Breakdown of the Total Capital and Information on its Adequacy) in this report.

11

Itaú Unibanco

Risk and Capital Management – Pillar 3

The following table presents subordinated debts and other instruments eligible for Tier II capital:

Instruments Eligible for Tier II Capital	R$ million
	Maturities												06/30/2017		03/31/2017		06/30/2016
Name of instrument	<1 year		1-2 years		2-3 years		3-4 years		4-5 years		> 5 years		Total		Total		Total
Bank Deposit Certificate (CDB)		-		-		-		-		-		-		-		-		2,201
Financial Bills		11,535		4,898		61		-		97		3,988		20,580		23,057		27,473
Euronotes		-		-		3,308		4,192		7,595		10,758		25,854		24,758		25,067
Subordinated Debt (Jun/17)		11,535		4,898		3,369		4,192		7,693		14,747		46,434		47,815		54,741
Subordinated Debt Not Elegible to Capital		313		253		170		168		217		4,549		5,671		5,411		5,541
Subordinated Debt - Total (Jun/17)		11,849		5,150		3,539		4,360		7,910		19,296		52,104
Subordinated Debt after Reducer (Jun/17)		-		980		1,348		2,515		6,154		14,747		25,743
Subordinated Debt after Reducer (Dec/12)		-		990		290		4,235		7,093		26,514		39,122
Preferred Shares (Dec/12)		-		-		323		-		-		-		323
Threshold (1) Instruments Eligible for Tier II Capital (Dec/12)		-		495		307		2,117		3,547		13,257		19,723
Instruments Eligible for Tier II Capital (Jun/17) (2)		-		495		307		2,117		3,547		13,257		19,723

⁽¹⁾ Instruments Eligible for Tier II Capital with application of threshold in accordance with the current rules (Resolution 4,192 - Art 28).

⁽²⁾ According to current legislation, the accounting balance of instruments eligible for Tier II Capital as of December 2012 was used for the calculation of total capital as of June, 2017.

For further details of instruments that are part of the Total Capital, please visit the website www.itau.com.br/investor- relations, section “Corporate Governance, Pillar 3 – Spreadsheet Support”, “Appendix I and II – Pillar 3”, “Appendix II – Main Features of the Total Capital (PR) Instruments”.

12

Itaú Unibanco

Risk and Capital Management – Pillar 3

2.5 Risk-Weighted Asset (RWA)

According to CMN Resolution 4,193 and subsequent amendments, for assessing the minimum capital requirements, the RWA must be calculated by adding the following portions:

RWA = RWA_CPAD + RWA_MINT + RWA_OPAD

· RWA_CPAD = portion related to exposures to credit risk, calculated using standardized approach;

· RWA_MINT = portion related to the market risk capital requirement, made up of the maximum between the internal model and 90% of the standardized model, and regulated by BACEN Circulars 3,646 and 3,674;

· RWA_OPAD = portion related to the operational risk capital requirement, calculated using standardized approach.

The table below presents the evolution of RWA composition of Itaú Unibanco.

Composition of Risk-Weighted Asset	R$ million
Risk exposures	06/30/2017 (1)				03/31/2017 (1)				06/30/2016 (2)
Risk-Weighted Assets for Credit Risk (RWACPAD)		642,616	88.7	%		642,700	89.3	%		690,963	91.9	%
Risk-Weighted Assets for Market Risk (RWAMINT)		27,450	3.8	%		22,033	3.1	%		17,709	2.4	%
Risk-Weighted Assets for Operational Risk (RWAOPAD)		54,417	7.5	%		54,417	7.6	%		43,448	5.7	%
Risk-Weighted Assets (RWA)		724,483	100.0	%		719,150	100.0	%		752,120	100.0	%

⁽¹⁾ Market risk portion calculated from internal models. It includes external units, which follow standardized model.

⁽²⁾ Market risk portion calculated from standardized models.

Risk-Weighted Assets for Credit Risk (RWA_CPAD)

The table below presents the credit risk-weighted assets (RWA_CPAD), regulated by BACEN Circular 3,644, segregated by risk weighting factor and by asset type:

Composition of Risk-Weighted Assets for Credit Risk (RWACPAD)	R$ million
	06/30/2017		03/31/2017		06/30/2016
Risk exposures
Exposure weighted by credit risk (RWACPAD)		642,616		642,700		690,963
a) Per Weighting Factor (FPR):
FPR at 2%		133		104		161
FPR at 20%		6,963		6,956		7,121
FPR at 35%		13,115		13,026		11,396
FPR at 50%		43,328		44,403		47,095
FPR at 75%		137,415		137,830		141,482
FPR at 85%		87,750		92,745		116,582
FPR at 100%		301,570		302,200		314,034
FPR at 250%		32,718		26,419		28,267
FPR at 300%		4,408		4,071		7,968
FPR up to 1250%(1)		3,547		3,429		1,744
Derivatives – Variation of the counterparty credit quality		6,000		5,607		8,858
Derivatives – Future potential gain		5,669		5,910		6,254
b) Per Type:
Securities		43,524		43,768		44,191
Loan operations - Retail		109,075		109,904		113,500
Loan operations - Non-retail		237,794		239,482		254,016
Joint liabilities - Retail		186		188		207
Joint liabilities - Non-retail		44,902		45,063		48,713
Loan commitments - Retail		28,147		27,735		27,773
Loan commitments - Non-retail		8,977		10,024		11,009
Other exposures		170,011		166,536		191,554

⁽¹⁾ Taking into consideration the application of the “F” factor required by Article 29 of BACEN Circular 3,644.

13

Itaú Unibanco

Risk and Capital Management – Pillar 3

Risk-Weighted Assets for Market Risk (RWA_MINT)

The market risk weighted assets (RWA_MINT) component is regulated by BACEN Circulars 3,646 and 3,674.

The table below includes the breakdown of the market risk component:

Composition of Risk-Weighted Assets for Market Risk (RWAMINT)							R$ million
	06/30/2017 (1)			03/31/2017 (1)			06/30/2016 (2)
Risk-Weighted Assets for Market Risk (RWAMPAD)		30,500			24,481			17,709
Trades subject to interest rate variation		28,682			22,627			15,656
Fixed income interest rate denominated in reais		4,374			5,882			3,507
Foreign exchange linked interest rate		17,707			13,735			7,033
Price index linked interest rate		6,602			3,010			5,115
Interest rate linked interest rate		0			0			-
Operations subject to commodity price variation		331			424			510
Operations subject to stock price variation		273			383			312
Operations subject to the risk of exposures in gold, foreign currency and foreign exchange variations		1,213			1,047			1,231
Internal market risk models benefits		(3,050	)		(2,448	)
Risk-Weighted Assets for Market Risk (RWAMINT)		27,450			22,033
Market Risk Weighted Assets calculated through internal models		22,630			21,392

⁽¹⁾ Market risk portion calculated from internal models.

⁽²⁾ Market risk portion calculated from standardized models.

On June 30, 2017, RWA_MINT reached R$ 27,450 million, or 90% of RWA_MPAD, which is higher than the capital requirement ascertained using internal models, which amounted to R$ 22,630 million.

Risk-Weighted Assets for Operational Risk (RWA_OPAD)

BACEN Circulars 3,640, 3,316 and subsequent amendments established the criteria for determining the portion of risk-weighted assets related to the capital required for operational risk (RWA_OPAD). In accordance with current regulation, the exposure of RWA_OPAD is calculated on a semiannual basis, related to June 30 and December 31.

The RWA for operational risk is presented below:

Composition of Risk-Weighted Assets for Operational Risk (RWAOPAD)					R$ million
	06/30/2017		03/31/2017		06/30/2016
Risk-Weighted Assets for Operational Risk (RWAOPAD)		54,417		54,417		43,448
Retail		11,252		11,252		7,990
Commercial		24,549		24,549		23,069
Corporate finance		2,581		2,581		2,946
Negotiation and sales		4,135		4,135		577
Payments and settlements		3,667		3,667		3,419
Financial agent services		3,729		3,729		3,070
Asset management		4,488		4,488		2,375
Retail brokerage		15		15		2

14

Itaú Unibanco

Risk and Capital Management – Pillar 3

2.6 Additional Common Equity Tier I

A requirement for Additional Common Equity Tier I (ACP) came into effect in the first quarter of 2016. Details of its portions are shown below:

Additional Common Equity Tier I (ACP)	R$ million
	06/30/2017		03/31/2017		06/30/2016
Additional Common Equity Tier I requirement (ACPrequirement)		10,867		10,787		4,701
conservation		9,056		8,989		4,701
countercyclical		-		-		-
systemically importance		1,811		1,798		-

BACEN Circular 3,769 describes the method for calculating the portion of ACP_{countercyclical}. Details of its portions are shown below for the relevant jurisdictions:

Additional Common Equity Tier I countercyclical (ACP_{countercyclical})

	06/30/2017		03/31/2017		06/30/2016						R$ million
			RWACPrNBi (1)				ACCP(2)			date of announcement	date of effectiveness
Brazil		405,875		415,430		421,977		0	%	oct/15	jan/16
Chile (3)		78,010		74,504		84,955		0	%	-	-
Total		483,885		489,934		506,932		-		-	-

⁽¹⁾ Portion of the RWA balance for credit risk exposure to the non-banking private sector in the relevant jurisdictions.

⁽²⁾ Percentage amount of the Additional Common Equity Tier I countercyclical for the principal jurisdictions.

⁽³⁾ Method of calculating countercyclical buffer not announced in this jurisdiction. According to Article 2 of BACEN Circular No. 3,769 the ACCP of Brazil value should be used.

15

Itaú Unibanco

Risk and Capital Management – Pillar 3

2.7 Capital Adequacy

Itaú Unibanco, through ICAAP process, assesses the adequacy of its capital to face the incurred risks, composed by regulatory capital for credit, market and operational risks and by the necessary capital to face other risks.

In order to ensure the soundness of Itaú Unibanco and the availability of capital to support business growth, Itaú Unibanco maintains capital levels above the minimum requirements, according to the Common Equity Tier I, Additional Tier I Capital, and Tier II minimum ratios.

On June 30, 2017, the Total Capital (PR) reached R$ 133,654 million, R$ 113,865 million of Tier I and R$ 19,798 million of Tier II.

Composition of Referential Equity (PR)	R$ million
	06/30/2017		03/31/2017		06/30/2016
Tier I		113,865		110,608		112,149
Common Equity Tier I		113,816		110,454		111,464
Additional Tier I Capital		49		154		685
Tier II		19,789		19,786		23,686
Referential Equity (PR)		133,654		130,394		135,835
Required Referential Equity (PRE)		67,015		66,521		74,272
Excess capital in relation to Required Referential Equity		66,639		63,873		61,563
Additional Common Equity Tier I requirement (ACPrequirement)		10,867		10,787		4,701
Referential equity calculated for covering the interest rate risk of trades of the banking book(RBAN)		2,366		2,747		1,820

The Total Capital Ratio reached 18.4% in June 30, 2017, increasing 30 bps relatively to March 31, 2017, mainly due to profits in the period.

Besides, Itaú Unibanco has a R$ 66,639 million capital excess in relation to its required Total Capital, higher than the Additional Common Equity Tier I requirement of R$ 10,867 million, largely covered by total capital available.

The Fixed Assets Ratio (“Índice de Imobilização”) indicates the level of adjusted Total Capital committed to adjusted permanent assets. Itaú Unibanco is within the maximum limit of 50% of the adjusted Total Capital, as established by BACEN.

The Total Capital and Fixed Assets ratios are presented in the table below.

Basel and Fixed Asset Ratios	R$ million
	06/30/2017			03/31/2017			06/30/2016
Basel ratio		18.4	%		18.1	%		18.1	%
Tier I		15.7	%		15.4	%		14.9	%
Common Equity Tier I		15.7	%		15.4	%		14.8	%
Additional Tier I Capital		0.0	%		0.0	%		0.1	%
Tier II		2.7	%		2.8	%		3.2	%
Fixed assets ratio		24.0	%		24.6	%		24.4	%
Excess Capital in Relation to Fixed Assets		34,773			33,113			34,834

16

Itaú Unibanco

Risk and Capital Management – Pillar 3

Taking into consideration Itaú Unibanco’s current capital base, and if Basel III rules established by BACEN were fully implemented, Common Equity Tier I would be 14.5% on June 30, 2017, including the consolidation of Citibank’s Brazilian retail business and the investment in XP Investimentos (estimated impact based on preliminary information), and the use of tax credits. These variations are presented in the following chart.

Simulated Common Equity Tier I with Fully Loaded Basel III Rules

⁽⁵⁾Includes deductions of Goodwill, Intangible Assets (before and after October 13), Tax Credits from Temporary Differences and Tax Loss Carryforwards, Pension Fund Assets, Equity Investments in Financial Institutions, Insurance and similar companies.

⁽⁶⁾Includes the increase of the multiplier of the market risk, operational risk and certain credit risk accounts. This multiplier, which is at 10.8 nowadays, will be to 12.5 in 2019.

⁽⁷⁾The consolidation of Citibank considers the retail business (for individuals) in Brazil. Estimated impact based on preliminary information and pending regulatory approvals.

⁽⁸⁾Considering dividends payout above the mandatory minimum (registered in Retained Earnings within Shareholders’ Equity) relative to earnings accumulated over the year, the CET I Full (before the use of tax credits) would be 13.2%.

⁽⁹⁾Does not include any reversal of the complementary allowance for loan losses.

17

Itaú Unibanco

Risk and Capital Management – Pillar 3

2.8 Leverage Ratio

The Leverage Ratio is defined as the ratio between Tier I Capital and Total Exposure, calculated according to BACEN Circular 3,748. The ratio is intended to be a simple measure of non-risk-sensitive leverage, and so it does not take into account risk weighs or risk mitigation. As required by BACEN Circular Letter 3,706, Itaú Unibanco has since October 2015 been reporting the Leverage Ratio to BACEN monthly, however the minimum Leverage Ratio should become mandatory in 2018, according to Basel recommendations, and is defined based on the observations during a period from its implementation in 2011 until 2017.

The following information is based on the methodology and standard format introduced by BACEN Circular 3,748. As of June 30, 2017, Itaú Unibanco’s Leverage Ratio reached 8.6%.

	Comparative Summary of Published Financial Statements and Leverage Ratio
								R$ Thousand
		06/30/2017			03/31/2017			06/30/2016
1	Total assets according to published financial statements		1,448,335,224			1,413,269,481			1,395,856,247
2	Adjustment for differences in consolidation of accounts		(161,968,404	)		(157,421,852	)		(137,079,581	)
3	Adjustment for assets assigned or transferred with substantial transfer of risks and benefits and		(4,594,553	)		(4,750,910	)		(4,938,209	)
4	Adjustment for changes in reference values and potential future gains on derivative financial		15,964,048			16,477,635			18,096,294
5	Adjustment for repurchase transactions and securities lending		6,449,430			8,359,853			6,098,733
6	Adjustment for transactions not booked in prudential conglomerate's total assets		120,623,974			122,629,671			113,097,986
7	Other adjustments		(100,045,223	)		(96,138,649	)		(85,152,964	)
8	Total Exposure		1,324,764,495			1,302,425,229			1,305,978,506
	Disclosure of information on Leverage Ratio
								R$ Thousand
		06/30/2017			03/31/2017			06/30/2016
	Items shown in the Balance Sheet
1	Balance sheet items other than derivative financial instruments, securities received on loan and resales		942,526,315			923,951,492			916,703,057
2	Adjustments for equity items deducted in calculating Level I Capital		(32,597,352	)		(34,175,711	)		(27,272,628	)
3	Total exposure shown in the Balance Sheet		909,928,963			889,775,781			889,430,429
	Transactions using Derivative Financial Instruments
4	Replacement value for derivatives transactions		16,723,739			21,563,701			38,993,289
5	Potential future gains from derivatives transactions		11,874,910			11,971,724			12,773,233
6	Adjustment for collateral in derivatives transactions		-			-			-
7	Adjustment for daily margin held as collateral		-			-			-
8	Derivatives in the name of customers where there is no contractual obligation to reimburse in the event of bankruptcy or default of the entities responsible for the settlement system		-			-			-
9	Reference value adjusted for credit derivatives		7,837,834			7,366,820			8,055,377
10	Adjustment of reference value calculated for credit derivatives		(3,748,696	)		(2,860,909	)		(2,732,317	)
11	Total exposure for derivative financial instruments		32,687,787			38,041,336			57,089,582
	Repurchase Transactions and Securities Lending (TVM)
12	Investments in repurchase transactions and securities lending		255,074,341			243,618,589			240,261,775
13	Adjustment for repurchases for settlement and creditors of securities lending		-			-			-
14	Amount of counterparty credit risk		6,449,430			8,359,853			6,098,733
15	Amount of counterparty credit risk in transactions as intermediary		-			-			-
16	Total exposure for repurchase transactions and securities lending		261,523,770			251,978,442			246,360,508
	Off-balance sheet items
17	Reference value of off-balance sheet transactions		295,384,369			295,310,303			307,023,338
18	Adjustment for application of FCC specific to off-balance sheet transactions		(174,760,395	)		(172,680,633	)		(193,925,352	)
19	Total off-balance sheet exposure		120,623,974			122,629,670			113,097,986
	Capital and Total Exposure
20	Level I		113,865,562			110,607,763			112,149,072
21	Total Exposure		1,324,764,495			1,302,425,229			1,305,978,506
	Leverage Ratio
22	Basel III Leverage Ratio		8.6	%		8.5	%		8.6	%

18

Itaú Unibanco

Risk and Capital Management – Pillar 3

3 Balance Sheet

The following table presents a comparison between the Balance Sheet of Itaú Unibanco Holding S.A. presented in the Financial Statements and of Prudential Consolidation.

Comparisson of balance sheets – Assets	R$ million
	Consolidated						Prudential			Ref. Appendix
	balance sheet			Diferences (1)			Consolidation			I (2)
Assets	06/30/2017
Current assets and Long-term receivables		1,422,005			(181,059	)		1,240,947
Cash and cash equivalents		22,700			(124	)		22,575
Interbank investments		288,333			(4,545	)		283,787
Securities and derivative financial instruments		389,593			(171,560	)		218,033
Interbank accounts		92,887			-			92,887
Interbranch accounts		49			-			49
Loan, lease and other credit operations		444,342			-			444,342
Other receivables		181,261			(4,633	)		176,628
Tax credit and Actuarial Assets		-			-			23,379
Tax credits arising from income tax losses and social contribution		-			-			7,346		(b)
Credits resulting from temporary differences		-			-			15,701		(c)
Actuarial assets related to defined benefit pension funds		-			-			332		(d)
Other		-			-			153,249
Other assets		2,840			(196	)		2,644
Permanent assets		26,330			19,090			45,420
Investments		5,025			17,391			22,416
Goodwill based on the expectation of future profitability		-			-			900		(e)
investments in the capital of companies that are similar to non-consolidated financial institutions and		-			-			9,398		(f)
insurance companies
investments in the capital of financial institutions		-			-			970		(a)
Other		-			-			11,148
Real estate in use		6,513			(534	)		5,979
Deferred permanent assets		-			-			-		(g)
Other		-			-			5,979
Goodwill		1,296			(501	)		795
Goodwill based on the expectation of future profitability		-			-			795		(e)
Intangible assets		13,496			2,734			16,231
Acquisition of rights to credit payroll		1,004			-			1,004
Intangible assets acquired from October 1st 2013		-			-			634		(h)
Intangible assets acquired before October 1st 2013		-			-			370		(i)
Other intangible assets		18,079			10,966			29,045
Intangible assets acquired from October 1st 2013		-			-			6,869		(h)
Intangible assets acquired before October 1st 2013		-			-			2,651		(i)
Goodwill based on the expectation of future profitability		-			-			18,988		(e)
Deferred permanent assets		-			-			374		(g)
Other		-			-			163
(Accumulated amortization)		(5,587	)		(8,231	)		(13,818	)
Intangible assets acquired from October 1st 2013		-			-			(1,930	)	(h)
Intangible assets acquired before October 1st 2013		-			-			(1,761	)	(i)
Goodwill based on the expectation of future profitability		-			-			(9,753	)	(e)
Deferred permanent assets		-			-			(374	)	(g)
Total assets		1,448,335			(161,968	)		1,286,367

⁽¹⁾Differences are mainly due to non-consolidation of non-financial companies (highlighting the following companies: Insurance, Pension Plan and Premium Bonds) in the Prudential Consolidation and also by the elimination of transactions with related parties.

⁽²⁾ Prudential information, which is presented in Appendix I of this report.

19

Itaú Unibanco

Risk and Capital Management – Pillar 3

Comparisson of balance sheets – Liabilities										R$ million
	Consolidated Balance Sheet			Diferences (1)			Prudential Consolidation			Ref. Appendix I (2)
Liabilities	06/30/2017
Current and Long-term Liabilities		1,315,971			(164,023	)		1,151,948
Deposits		352,327			2,253			354,581
Deposits received under securities repurchase agreements		339,123			2,435			341,558
Funds from acceptances and issuance of securities		108,076			6			108,082
Interbank accounts		5,277			-			5,277
Interbranch accounts		5,980			2			5,982
Borrowings and onlending		69,530			-			69,530
Derivative financial instruments		20,727			-			20,727
Technical provision for insurance, pension plan and capitalization		169,747			(169,747	)		-
Other liabilities		245,183			1,028			246,211
Social and statutory		22,277			(1,856	)		20,421
Tax credits arising from income tax losses and social contribution		-			-			13,103		(b)/(c)
Provision of Actuarial assets related to defined benefit pension funds		-			-			174		(d)
Other		-			-			7,144
Other		-			-			225,790
Deferred income		2,181			(37	)		2,144
Non-controlling interest in subsidiaries		11,804			(58	)		11,746
Non-controlling interest in subsidiaries that are part of the conglomerate		-			-			11,746		(j)
Stockholders' equity		118,379			2,150			120,530
Capital		97,148			-			97,148
Eligible Instruments		-			-			97,148		(k)
Capital reserves		1,353			-			1,353
Capital reserves		-			-			1,353		(m)
Revenue reserves		25,613			951			26,564
Revenue reserves		-			-			26,564		(l)
Asset valuation adjustment		(3,164	)		1,200			(1,964	)
Other revenue and other reserve		-			-			(1,964	)	(m)
(Treasury shares)		(2,571	)		-			(2,571	)
Shares or other instruments issued by the bank		-			-			(2,571	)	(n)
Total liabilities and stockholders' equity		1,448,335			(161,968	)		1,286,367

⁽¹⁾ Differences are mainly due to non-consolidation of non-financial companies (highlighting the following companies: Insurance, Pension Plan and Premium Bonds) in the Prudencial Consolidation and also by the eliminations of transactions with related parties.

⁽²⁾ Prudential information, which is presented in Appendix I of this report.

20

Itaú Unibanco

Risk and Capital Management – Pillar 3

Institutions that comprise the Financial Statements of Itaú Unibanco Holding

The lists below provides the institutions that comprise the financial statements and the Prudential Consolidation of Itaú Unibanco.

List of institutions that comprise the Financial Statements of Itaú Unibanco Holding
Institutions that comprise the financial statements and the Prudential Consolidation
Aj Títulos Públicos Fundo de Investimento Referenciado DI	Itaú Corpbanca
Banco Investcred Unibanco S.A.	Itaú Corpbanca Colombia S.A.
Banco Itaú (Suisse) S.A.	Itaú Corpbanca Corredores de Bolsa S.A.
Banco Itaú Argentina S.A.	Itaú Corretora de Valores S.A.
Banco Itaú BBA S.A.	Itaú Distribuidora de Títulos e Valores Mobiliários S.A.
Banco Itaú Consignado S.A.	Itaú EU Lux-Itaú Latin America Equity Fund
Banco Itaú International	Itaú International Securities Inc.
Banco Itaú Paraguay S.A.	Itaú Kinea Private Equity Multimercado Fundo de Investimento em Cotas de Fundos de Investimento Crédito Privado
Banco Itaú Uruguay S.A.	Itaú Securities Services S.A. Sociedad Fiduciaria
Banco Itaú Veículos S.A.	Itaú Unibanco Holding Cayman Branch
Banco ItauBank S.A.	Itaú Unibanco Holding S.A.
Banco Itaucard S.A.	Itaú Unibanco S.A.
Banco Itauleasing S.A.	Itaú Unibanco S.A. Cayman Branch
CorpBanca New York Branch	Itaú Unibanco S.A. New York Branch
Ctbh Fundo de Investimento Imobiliário - FII	Itaú Unibanco S.A. Tokyo Branch
Dibens Leasing S.A. - Arrendamento Mercantil	Itaú Unibanco S.A.Nassau Branch
Estrutura III - Fundo de Investimento em Participações	Itaú Unibanco Veículos Administradora de Consórcios Ltda.
FICFI 40675	Itaú Valores S.A.
Fideicomisos Financiero Privados BHSA	Itauvest Distribuidora de Títulos e Val. Mobiliários S.A.
Fideicomisos Financiero TB1	ITB Holding Ltd.
Financeira Itaú CBD S.A. - Crédito, Financ. e Investimento	Kinea Dinâmico Master - Long Biased Fundo de Investimento em Ações
Fundo De Investimento Em Direitos Creditórios Não-Padronizados América Multicarteira	Kinea I Pipe Fundo de Investimento em Ações
Fundo de Investimento em Direitos Creditórios Não-Padronizados Barzel	Kinea I Private Equity Fundo de Investimento em Participações
Fundo de Investimento em Direitos Creditórios Não-Padronizados NPL I	Kinea I Total Return Equity - Fundo de Investimento em Cotas de Fundos de Investimento Multimercado
Fundo Fortaleza de Investimento Imobiliário	Kinea II Macro Fundo de Investimento Multimercado
Hipercard Banco Múltiplo S.A.	Kinea Infra I MCP
Intrag Distribuidora de Títulos e Valores Mobiliários Ltda.	Kinea Macro Offshore Segregated Portfolio
Iresolve Companhia Securitizadora de Créditos Financeiros S.A.	Licania Fund Limited
Itaú (Panamá) S.A.	Luizacred S.A. Soc. de Crédito Financiamento E Investimento
Itaú Administradora de Consórcios Ltda.	MCC S.A. Corredores de Bolsa
Itaú Asset Management Colombia S.A. Sociedad Fiduciaria	MCC Securities Inc.
Itaú Bank & Trust Bahamas Ltd.	Microinvest S.A. Soc. de Crédito a Microempreendedor
Itaú Bank & Trust Cayman Ltd.	OCA S.A.
Itau Bank, Ltd.	Oiti Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior
Itaú BBA Colombia S.A. Corporacion Financiera	RedeCard S.A.
Itau BBA International plc	Rt Enterprise Soberano Renda Fixa Fundo de Investimento
Itau BBA USA Securities Inc.	Rt Itaú Dj Títulos Públicos Fundo de Investimento Referenciado DI
Itaú Casa de Valores S.A.	Rt Voyager Renda Fixa Crédito Privado - Fundo de Investimento
Itaú Cia. Securitizadora de Créditos Financeiros	Uni-Investment International Corp.
Itaú Comisionista de Bolsa Colombia S.A.	Universo Fundo de Investimento em Participações

21

Itaú Unibanco

Risk and Capital Management – Pillar 3

Institutions that comprise only the financial statements

Itaú Seguros S.A.	Itaú Administração Previdenciária Ltda.
Itaú BBA International (Cayman) Ltd.	Itaú Chile Compañía de Seguros de Vida S.A.
Afinco Americas Madeira, SGPS, Sociedade Unipessoal, Lda	ITB Holding Brasil Participações Ltda.
Itaú Europa Luxembourg S.A	Tulipa S.A.
Itaú Asset Management S.A. Sociedad Gerente de Fondos Comunes de Inversión	Estrel Serviços Administrativos S.A.
Borsen Renda Fixa Crédito Privado - Fundo de Investimento	Itaú Vida e Previdência S.A.
IPI - Itaúsa Portugal Investimentos, SGPS, Unipessoal, Lda	Marcep Corretagem de Seguros S.A.
Banco Del Paraná S.A.	Provar Negócios de Varejo Ltda.
Itauprev Retirement Renda Fixa Crédito Privado - Fundo de Investimento	Itau USA Asset Management Inc.
Itauseg Saúde S.A.	Itaú BBA México, S.A. de C.V.
Itaúsa Europa - Investimentos, SGPS, Unipessoal, Lda	Itaú Corretora de Seguros Ltda.
Topaz Holding Ltd.	Proserv - Promociones y Servicios S.A. de Capital Variable
Jasper International Investment LLC	Itau Cayman Directors Ltd.
Itaú International Investment LLC	Itau Cayman Nominees Ltd.
Mundostar S.A.	RT Alm Soberano 2 Fundo de Investimento Renda Fixa
Itaú BBA Trading S.A.	RT Alm 5 Fundo de Investimento Renda Fixa
Karen International Limited	Itaú Bahamas Directors Ltd.
Nevada Woods S.A.	Itaú Bahamas Nominees Ltd.
Itrust Servicios Inmobiliarios S.A.C.I.	Itaú Japan Asset Management Limited
Itaú BBA Participações S.A.	RT Nation Renda Fixa - Fundo de Investimento
Albarus S.A.	Rt Endeavour Renda Fixa Crédito Privado - Fundo de Investimento
Itau Global Asset Management Limited	Rt Defiant Multimercado - Fundo de Investimento
BIE Cayman Ltd.	Rt Valiant Renda Fixa - Fundo de Investimento
Itaú Institucional Curto Prazo - Fundo de Investimento	Itau UK Asset Management Limited
IGA PARTICIPAÇÕES S.A.	MCC Asesorías Limitada
Itauseg Participações S.A.	Itaú Gestão de Vendas Ltda.
FIC Promotora de Vendas Ltda.	Itaú Participação Ltda.
Cia. Itaú de Capitalização	ITAUSEG SEGURADORA S.A.
Itaú Asia Securities Ltd.	Maxipago Serviços de Internet Ltda.
Itaú Rent Administração e Participações Ltda.	Corpbanca Administradora General de Fondos S.A.
Kinea Investimentos Ltda.	Itaú Asesorías Financieras S.A.
Itaú Chile Corredora de Seguros Ltda.	Corpbanca Corredores de Seguros S.A.
ACO Ltda.	Corpbanca Securities Inc.
Itaú Chile Inversiones, Servicios y Administracion S.A.	Corplegal S.A.
Itaú Chile Administradora General de Fondos S.A.	Recaudaciones y Cobranzas S.A.
Investimentos Bemge S.A.	Itaú Corredor de Seguros Colombia S.A.
Recuperadora de Creditos Ltda.	CGB II SpA
BICSA Holdings Ltd.	Recovery do Brasil Consultoria S.A.
iCarros Ltda.	FC Recovery S.A.U.
Unión Capital AFAP S.A.	Rt Multigestor 4 Fundo de Investimento em Cotas De Fundos de Investimento Multimercado
Itaú Middle East Limited	Rt Columbia Renda Fixa Crédito Privado - Fundo de Investimento em Cotas de Fundos de Investimento

Material entities

Total assets, stockholders’ equity, and the industries of the material entities, including those subject to the risk weight for the purpose of capital requirements are as follows:

Major Institutions													R$ million
			06/30/2017				03/31/2017				06/30/2016
Institutions	Country	Activity	Total Assets		Equity		Total Assets		Equity		Total Assets		Equity
Itaú Corpbanca Colombia S.A. (1)	Colombia	Financial institution		33,860		3,699		34,834		3,770		35,469		4,103
Banco Itaú Argentina S.A. (1)	Argentina	Financial institution		6,881		751		6,655		731		4,683		636
Banco Itaú BBA S.A. (1)	Brazil	Financial institution		2,258		2,043		3,171		2,965		5,175		4,666
Banco Itaú Consignado S.A. (1)	Brazil	Financial institution		30,122		2,514		30,059		2,458		43,630		2,382
Banco Itaú Paraguay S.A. (1)	Paraguay	Financial institution		10,895		1,131		10,410		1,203		10,530		1,359
Banco Itaú (Suisse) S.A. (1)	Switzerland	Financial institution		5,193		659		5,184		585		5,013		625
Banco Itaú Uruguay S.A. (1)	Uruguay	Financial institution		14,870		1,297		14,107		1,170		14,504		1,160
Banco Itaucard S.A. (1)	Brazil	Financial institution		94,062		8,289		98,254		8,067		104,217		20,033
Banco Itauleasing S.A. (1)	Brazil	Financial institution		11,723		11,389		11,542		11,238		11,078		10,593
Cia. Itaú de Capitalização	Brazil	Premium Bonds		4,252		785		4,136		693		3,896		534
Dibens Leasing S.A. - Arrendamento Mercantil (1)	Brazil	Leasing		108,733		4,585		143,650		4,403		166,603		4,264
Financeira Itaú CBD S.A. - Crédito, Financ. e Investimento (1)	Brazil	Consumer Finance Credit		4,139		947		4,042		1,145		3,703		1,021
Hipercard Banco Múltiplo S.A. (1)	Brazil	Financial institution		14,253		4,341		13,901		4,253		10,702		4,095
Itau Bank, Ltd. (1)	Cayman Islands	Financial institution		13,056		3,412		14,378		3,202		30,806		3,046
Itaú BBA Colombia S.A. Corporacion Financiera (1)	Colombia	Financial institution		364		353		432		347		543		345
Itau BBA International plc (1)	United Kingdom	Financial institution		19,285		3,465		18,243		3,258		21,120		3,243
Itau BBA USA Securities Inc. (1)	United States	Broker		1,640		1,458		1,525		1,394		1,470		1,361
Itauseg Seguradora S.A.	Brazil	Insurance		177		74		177		73		186		70
Itaú CorpBanca (1)	Chile	Financial institution		111,683		15,314		102,287		14,603		110,863		15,347
Itaú Corretora de Valores S.A. (1)	Brazil	Broker		2,601		1,174		2,801		1,427		3,463		1,488
Itaú Seguros S.A.	Brazil	Insurance		8,919		5,104		9,509		4,994		10,511		4,883
Itaú Unibanco S.A. (1)	Brazil	Financial institution		1,206,409		72,094		1,228,406		73,104		1,255,742		73,702
Itaú Vida e Previdência S.A.	Brazil	Pension Plan		167,411		3,747		162,578		3,903		141,696		3,830
Luizacred S.A. Soc. de Crédito Financiamento E Investimento (1)	Brazil	Consumer Finance Credit		4,814		639		4,593		626		4,069		575
Redecard S.A. (1)	Brazil	Acquirer		54,598		15,531		53,601		15,230		49,520		14,694

⁽¹⁾ Institutions included in the Prudential Conglomerate.

22

Itaú Unibanco

Risk and Capital Management – Pillar 3

4 Investments in other entities not classified in the trading book

The financial statements of Itaú Unibanco and its subsidiaries have been prepared in accordance with the Corporate Law (“Lei das Sociedades por Ações”), as amended, and with the rulings issued by BACEN, CMN, CVM, SUSEP, CNSP and PREVIC, as applicable, which include accounting practices and estimates for the establishment of provisions and the valuation of financial assets.

The interests held in other entities valued at acquisition price are classified in Permanent Assets, when there is the intention to hold them, and then are tested for impairment on a six-month basis. Investments in other companies which are not intended to be held for a long term are classified as Securities, and measured at market value.

Itaú Unibanco applies its policies on a systematic basis, ensuring the consistency and comparability of its information.

In the second quarter of 2017, there were no significant amendments to policies related to investments in other entities.

Itaú Unibanco holds corporate interests mainly for strategic reasons and to obtain capital gains.

For further information on Itaú Unibanco’s accounting policies, please see Note 4 – “Summary of the main accounting practices”, to the Complete Financial Statements, that can be found on the website www.itau.com.br/investor-relations.

The assessment of equity risk not included in the trading book, designated financial investment risk, is realized on ICAAP process. This assessment simulates asset losses in a stress scenario.

The table below shows the investments in other entities not classified in the trading book. On June 30, 2017, the capital required for these investments was R$ 69.3 million.

Investments in other entities	R$ million
	06/30/2017			03/31/2017		06/30/2016
Carrying Amount		755.2			820.3		311.8
Public		607.6			629.6		75.5
Private		147.7			190.7		236.4
Fair value		1,015.8			1,063.1		543.2
Public		819.4			837.2		264.7
Private		196.4			225.9		278.5
Gain or losses arising on investments in other entities		(51.6	)		9.6		73.0
Recognized and unrealized gain or losses		43.1			23.9		(143.4	)
Unrecognized and unrealized gain or losses		281.6			277.5		223.3

23

Itaú Unibanco

Risk and Capital Management – Pillar 3

5 Credit Risk

5.1 Framework and Treatment

Itaú Unibanco defines credit risk as the risk of loss associated with: failure by a borrower, issuer or counterparty to fulfill their respective financial obligations as defined in the contracts; value loss of credit agreements resulting from deterioration of the borrower’s, issuer’s or counterparty’s credit rating; reduction of profits or income; benefits granted upon subsequent renegotiations; or debt recovery costs.

The management of credit risk is intended to preserve the quality of the loan portfolio at levels compatible with the institution’s risk appetite for each market segment in which we operate. The governance of credit risk is managed through corporate bodies, which report to the Board of Directors or to the Itaú Unibanco executive structure. Such corporate bodies act primarily by assessing the competitive market conditions, setting the credit limits for the institution, reviewing control practices and policies, and approving these actions at the respective authority levels. The risk communication and reporting process, including disclosure of institutional and supplementary policies on credit risk management, are responsibility of this structure. Itaú Unibanco manages the credit risk to which it is exposed during the entire credit cycle, from before approval, during the monitoring process and up to the collection or recovery phase.

There is a credit risk management and control structure, centralized and independent of the business units and defines operational limits, risk mitigation mechanisms and processes, and instruments to measure, monitor and control the credit risk inherent to all products, portfolio concentrations and impacts to potential changes in the economic environment. The credit’s portfolio, policies and strategies are continuously monitored so as to ensure compliance with the rules and laws in effect in each country. The key assignments of the business units are (i) monitoring of the portfolios under their responsibility, (ii) granting of credit, taking into account current approval levels, market conditions, the macroeconomic prospects, and changes in markets and products, and (iii) credit risk management aimed at making the business sustainable.

Itaú Unibanco’s credit policy is based on internal factors, such as: client rating criteria, performance and evolution of the portfolio, default levels, return rates and allocated economic capital, among others; and also take into account external factors such as: interest rates, market default indicators, inflation and changes in consumption, among others.

With respect to individuals, small and medium companies, credit ratings are assigned based on statistical application (in the early stages of relationship with a customer) and behavior score (used for customers with whom Itaú Unibanco already has a relationship) models.

For large companies, classification is based on information such as the counterparty’s economic and financial situation, its cash-generating capacity, and the business group to which it belongs, the current and prospective situation of the economic sector in which it operates. Credit proposals are analyzed on a case-by-case basis through the approval governance.

The concentrations are monitored continuously for economic sectors and largest debtors, allowing preventive measures to be taken to avoid the violation of the established limits.

Itaú Unibanco also strictly controls credit exposure to clients and counterparties, acting to reserve occasional limit breaches. In this sense, contractual covenants may be used, such as the right to demand early payment or require additional collateral.

To measure credit risk, Itaú Unibanco takes into account the probability of default by the borrower, issuer or counterparty, the estimated amount of exposure in the event of default, past losses from default and concentration of borrowers. Quantifying these risk components is part of the lending process, portfolio management and definition of limits.

The models used by Itaú Unibanco are independently validated, to ensure that the databases used in constructing the models are complete and accurate, and that the method of estimating parameters is adequate, so as to reduce the modeling risk and keep the models calibrated, to that they reflect risk parameters more accurately.

Itaú Unibanco counts on a specific structure and processes aimed at ensuring that the country risk is managed and controlled, described in item “9 Other Risks”.

In compliance with CMN Resolution 3,721, the document “Public Access Report - Credit Risk,” which describes the guidelines established in the institutional ruling on credit risk control, can be viewed on the website www.itau.com.br/investor-relations, in the section “Corporate Governance , Rules and Policies”.

24

Itaú Unibanco

Risk and Capital Management – Pillar 3

5.2 Credit Portfolio Analysis

The information presented in the following tables allow the analysis of the credit portfolio, and its behavior, from different dimensions.

Operations with Credit Granting Characteristics by Countries and by Brazil Geographic Regions

Operations with Credit(1) Granting Characteristics by Countries: Exposure																							R$ million
	06/30/2017																						03/31/2017
	Brazil		Argentina		Chile		Colombia		United States of America		Paraguay		United Kingdon		Switzerland		Uruguay		Other		Total		Total
Individuals		193,886		1,470		35,898		8,454		1		2,416		-		-		2,675		21		244,821		243,057
Rural Loans		121		-		-		-		-		-		-		-		-		-		121		135
Real State		38,041		8		19,569		1,123		-		226		-		-		292		-		59,259		58,246
Payroll		43,044		-		-		-		-		-		-		-		-		-		43,044		43,359
Vehicle and Leasing		13,437		-		-		198		-		131		-		-		-		-		13,766		14,488
Credit card		70,824		1,010		2,311		807		-		683		-		-		1,621		-		77,256		76,481
Financial Guarantees Provided		634		-		15		1		1		-		-		-		3		9		663		670
Personal Loans (Other)		27,785		452		14,003		6,325		-		1,376		-		-		759		12		50,712		49,678
Companies		201,706		2,907		48,771		16,594		6,911		3,724		9,258		2,764		5,151		871		298,657		303,481
Rural Loans		10,503		-		-		-		-		-		-		-		-		-		10,503		10,046
Investments		42,137		2		4,327		2,907		-		5		19		-		34		58		49,489		52,227
Import and Export		22,021		429		1,277		759		3,176		-		2,300		2,621		36		-		32,619		33,827
Working Capital, Discount Bonds and Secured Line of Credit		79,859		2,119		38,360		11,449		3,247		3,465		6,731		-		4,789		713		150,732		152,244
Financial Guarantees Provided		41,557		356		4,586		1,320		488		252		208		143		276		100		49,286		49,542
Other		5,629		1		221		159		-		2		-		-		16		-		6,028		5,595
Total		395,592		4,377		84,669		25,048		6,912		6,140		9,258		2,764		7,826		892		543,478		546,538

⁽¹⁾ The amount includes financial guarantees provided and committed loans, do not includes securities and is net of allowance for loan losses.

Operations with Credit(1) Granting Characteristics by Countries: Quarterly Average Exposure																							R$ million
	06/30/2017																						03/31/2017
	Brazil		Argentina		Chile		Colombia		United States of America		Paraguay		United Kingdon		Switzerland		Uruguay		Other		Total		Total
Individuals		194,151		1,438		34,842		8,564		1		2,355		-		-		2,566		21		243,938		244,169
Rural Loans		129		-		-		-		-		-		-		-		-		-		129		155
Real State		38,143		6		18,953		1,152		-		215		-		-		283		-		58,752		58,134
Payroll		43,202		-		-		-		-		-		-		-		-		-		43,202		43,260
Vehicle and Leasing		13,793		-		-		203		-		130		-		-		-		-		14,126		14,761
Credit card		70,548		1,016		2,273		827		-		657		-		-		1,547		-		76,868		77,554
Financial Guarantees Provided		637		-		14		2		1		-		-		-		3		9		666		665
Personal Loans (Other)		27,699		416		13,602		6,380		-		1,353		-		-		733		12		50,195		49,640
Companies		205,513		2,819		48,225		16,667		6,598		3,758		8,920		2,643		5,092		835		301,070		309,238
Rural Loans		10,276		-		-		-		-		-		-		-		-		-		10,276		10,216
Investments		43,523		2		4,351		2,861		-		5		19		-		33		65		50,859		53,958
Import and Export		23,133		446		1,268		550		3,079		-		2,208		2,504		35		-		33,223		33,659
Working Capital, Discount Bonds and Secured Line of Credit		80,980		2,086		38,049		11,822		3,109		3,491		6,541		-		4,736		674		151,488		155,826
Financial Guarantees Provided		42,152		284		4,355		1,291		410		261		152		139		272		96		49,412		50,152
Other		5,449		1		202		143		-		1		-		-		16		-		5,812		5,427
Total		399,664		4,257		83,067		25,231		6,599		6,113		8,920		2,643		7,658		856		545,008		553,407

⁽¹⁾ The amount includes financial guarantees provided and committed loans, do not includes securities and is net of allowance for loan losses.

Operations with Credit(1) Granting Characteristics in Brazil: Exposure													R$ million
	06/30/2017												03/31/2017
	Southeast		South		North		Northeast		Midwest		Brazil		Brazil
Individuals		125,387		21,377		7,088		28,001		12,033		193,886		194,417
Rural Loans		94		21		-		1		5		121		135
Real State		31,855		2,641		384		1,437		1,724		38,041		38,247
Payroll		23,580		5,079		3,410		7,736		3,239		43,044		43,359
Vehicle and Leasing		7,228		2,168		722		1,863		1,456		13,437		14,151
Credit card		41,192		8,457		2,051		15,233		3,891		70,824		70,272
Financial Guarantees Provided		559		24		1		6		44		634		640
Personal Loans (Other)		20,879		2,987		520		1,725		1,674		27,785		27,613
Companies		171,807		16,953		1,351		6,541		5,054		201,706		209,319
Rural Loans		5,747		3,544		9		216		987		10,503		10,046
Investments		33,753		4,180		441		2,020		1,743		42,137		44,908
Import and Export		19,791		1,419		131		432		248		22,021		24,246
Working Capital, Discount Bonds and Secured Line of Credit		67,190		6,833		645		3,372		1,819		79,859		82,103
Financial Guarantees Provided		41,054		313		41		94		55		41,557		42,747
Other		4,272		664		84		407		202		5,629		5,269
Total		297,194		38,330		8,439		34,542		17,087		395,592		403,736

⁽¹⁾ The amount includes financial guarantees provided and committed loans, do not includes securities and is net of allowance for loan losses.

25

Itaú Unibanco

Risk and Capital Management – Pillar 3

Operations with Credit(1) Granting Characteristics in Brazil: Quarterly Average Exposure													R$ million
	06/30/2017												03/31/2017
	Southeast		South		North		Northeast		Midwest		Brazil		Brazil
Individuals		125,456		21,405		7,120		28,069		12,101		194,151		195,269
Rural Loans		102		22		-		1		4		129		155
Real State		31,942		2,641		385		1,440		1,735		38,143		38,112
Payroll		23,628		5,096		3,421		7,782		3,275		43,202		43,260
Vehicle and Leasing		7,433		2,239		733		1,903		1,485		13,793		14,419
Credit card		40,982		8,399		2,061		15,223		3,883		70,548		71,301
Financial Guarantees Provided		561		25		1		6		44		637		629
Personal Loans (Other)		20,808		2,983		519		1,714		1,675		27,699		27,393
Companies		175,152		17,227		1,396		6,684		5,054		205,513		213,536
Rural Loans		5,594		3,555		7		226		894		10,276		10,216
Investments		34,825		4,320		469		2,118		1,791		43,523		46,560
Import and Export		20,961		1,422		134		363		253		23,133		23,628
Working Capital, Discount Bonds and Secured Line of Credit		68,002		6,970		663		3,479		1,866		80,980		85,046
Financial Guarantees Provided		41,641		308		40		105		58		42,152		42,998
Other		4,129		652		83		393		192		5,449		5,088
Total		300,608		38,632		8,516		34,753		17,155		399,664		408,805

⁽¹⁾ The amount includes financial guarantees provided and committed loans, do not includes securities and is net of allowance for loan losses.

Operations with Credit Granting Characteristics by Economic Sector

Operations with Credit Granting Characteristics in Brazil(1): Exposure

R$ million

06/30/2017

03/31/2017

Individuals

Rural Loans

Real State

Payroll

Vehicle and Leasing

Credit Card

Financial Guarantees Provided

Personal Loans (Other)

Total

Total

Total

121

59,259

43,044

13,766

77,256

663

50,712

244,821

243,057

⁽¹⁾ The amount includes financial guarantees provided and committed loans, do not includes securities and is net of allowance for loan losses.

Operations with Credit(1) Granting Characteristics in Brazil: Exposure																																				R$ million
	06/30/2017																																			03/31/2017
	Rural Loans					Investments					Import and Export					Working Capital, Discount Bonds and Guaranteed Account					Financial Guarantees Provided					Other					Total					Total
Companies	Total		%			Total		%			Total		%			Total		%			Total		%			Total		%			Total		%			Total		%
Public Sector		-		0.0	%		1,448		2.9	%		103		0.3	%		413		0.3	%		809		1.6	%		-		0.0	%		2,773		0.9	%		3,795		1.3	%
Energy		-		0.0	%		-		0.0	%		-		0.0	%		71		0.0	%		1		0.0	%		-		0.0	%		72		0.0	%		72		0.0	%
Petrochemical and Chemical		-		0.0	%		1,411		2.9	%		-		0.0	%		3		0.0	%		795		1.6	%		-		0.0	%		2,209		0.7	%		3,271		1.1	%
Sundry		-		0.0	%		37		0.1	%		103		0.3	%		339		0.2	%		13		0.0	%		-		0.0	%		492		0.2	%		452		0.1	%
Private Sector		10,503		100.0	%		48,041		97.1	%		32,516		99.7	%		150,319		99.7	%		48,477		98.4	%		6,028		100.0	%		295,884		99.1	%		299,686		98.7	%
Sugar and Alcohol		1,164		11.1	%		3,444		7.0	%		2,273		7.0	%		190		0.1	%		484		1.0	%		52		0.9	%		7,607		2.5	%		8,818		2.9	%
Agribusiness and Fertilizers		2,892		27.5	%		1,302		2.6	%		4,224		12.9	%		6,742		4.5	%		918		1.9	%		94		1.6	%		16,172		5.4	%		15,823		5.2	%
Food and Beverage		1,429		13.6	%		2,546		5.1	%		2,122		6.5	%		5,731		3.8	%		3,322		6.7	%		195		3.2	%		15,345		5.1	%		15,568		5.1	%
Banks and Other Financial Institutions		721		6.9	%		669		1.4	%		53		0.2	%		7,752		5.1	%		3,289		6.7	%		19		0.3	%		12,503		4.2	%		11,976		3.9	%
Capital Assets		113		1.1	%		948		1.9	%		743		2.3	%		2,367		1.6	%		1,720		3.5	%		227		3.8	%		6,118		2.0	%		6,283		2.1	%
Pulp and Paper		125		1.2	%		548		1.1	%		1,160		3.6	%		1,026		0.7	%		384		0.8	%		30		0.5	%		3,273		1.1	%		3,087		1.0	%
Electronic and IT		-		0.0	%		370		0.7	%		346		1.1	%		3,209		2.1	%		1,856		3.8	%		219		3.6	%		6,000		2.0	%		5,392		1.8	%
Packaging		3		0.0	%		269		0.5	%		314		1.0	%		1,269		0.8	%		284		0.6	%		56		0.9	%		2,195		0.7	%		2,217		0.7	%
Energy and Sewage		-		0.0	%		4,351		8.8	%		439		1.3	%		2,482		1.6	%		5,294		10.7	%		390		6.5	%		12,956		4.3	%		13,795		4.5	%
Education		-		0.0	%		273		0.6	%		-		0.0	%		1,705		1.1	%		904		1.8	%		56		0.9	%		2,938		1.0	%		2,956		1.0	%
Pharmaceuticals and Cosmetics		-		0.0	%		357		0.7	%		360		1.1	%		3,522		2.3	%		1,518		3.1	%		156		2.6	%		5,913		2.0	%		6,095		2.0	%
Real Estate Agents		41		0.4	%		11,975		24.2	%		8		0.0	%		9,850		6.5	%		1,419		2.9	%		198		3.3	%		23,491		7.9	%		24,517		8.1	%
Entertainment and Tourism		2		0.0	%		442		0.9	%		22		0.1	%		3,516		2.3	%		373		0.8	%		256		4.2	%		4,611		1.5	%		4,729		1.6	%
Wood and Furniture		38		0.4	%		332		0.7	%		439		1.3	%		1,375		0.9	%		50		0.1	%		124		2.1	%		2,358		0.8	%		2,445		0.8	%
Construction Material		-		0.0	%		921		1.9	%		436		1.3	%		3,166		2.1	%		1,071		2.2	%		197		3.3	%		5,791		1.9	%		6,151		2.0	%
Steel and Metallurgy		50		0.5	%		713		1.4	%		787		2.4	%		4,646		3.1	%		1,283		2.6	%		788		13.1	%		8,267		2.8	%		8,223		2.7	%
Media		-		0.0	%		127		0.3	%		77		0.2	%		415		0.3	%		309		0.6	%		18		0.3	%		946		0.3	%		932		0.3	%
Mining		1		0.0	%		425		0.9	%		619		1.9	%		3,858		2.6	%		2,551		5.2	%		45		0.7	%		7,499		2.5	%		6,979		2.3	%
Infrastructure Work		5		0.0	%		959		1.9	%		664		2.0	%		5,986		4.0	%		1,513		3.1	%		445		7.4	%		9,572		3.2	%		8,814		2.9	%
Oil and Gas (2)		53		0.5	%		625		1.3	%		475		1.5	%		3,235		2.1	%		1,326		2.7	%		100		1.7	%		5,814		1.9	%		6,181		2.0	%
Petrochemical and Chemical		130		1.2	%		618		1.2	%		1,285		3.9	%		5,789		3.8	%		1,530		3.1	%		162		2.7	%		9,514		3.2	%		10,016		3.3	%
Health Care		6		0.1	%		477		1.0	%		48		0.1	%		1,846		1.2	%		510		1.0	%		52		0.9	%		2,939		1.0	%		2,943		1.0	%
Insurance and Reinsurance and Pension Plans		-		0.0	%		16		0.0	%		-		0.0	%		39		0.0	%		60		0.1	%		-		0.0	%		115		0.0	%		95		0.0	%
Telecommunications		-		0.0	%		509		1.0	%		13		0.0	%		1,088		0.7	%		2,796		5.7	%		16		0.3	%		4,422		1.5	%		4,460		1.5	%
Clothing and Footwear		38		0.4	%		657		1.3	%		684		2.1	%		2,500		1.7	%		403		0.8	%		251		4.2	%		4,533		1.5	%		4,763		1.6	%
Trading		16		0.2	%		105		0.2	%		669		2.1	%		599		0.4	%		113		0.2	%		25		0.4	%		1,527		0.5	%		1,452		0.5	%
Transportation		7		0.1	%		5,223		10.6	%		361		1.1	%		4,414		2.9	%		1,011		2.1	%		314		5.2	%		11,330		3.8	%		12,513		4.1	%
Domestic Appliances		-		0.0	%		72		0.1	%		130		0.4	%		1,397		0.9	%		530		1.1	%		18		0.3	%		2,147		0.7	%		2,097		0.7	%
Vehicles and Autoparts		5		0.0	%		2,055		4.2	%		5,106		15.7	%		6,227		4.1	%		3,537		7.2	%		236		3.9	%		17,166		5.7	%		17,633		5.8	%
Third Sector		-		0.0	%		25		0.1	%		-		0.0	%		2,775		1.8	%		72		0.1	%		3		0.0	%		2,875		1.0	%		3,087		1.0	%
Publishing and Printing		1		0.0	%		131		0.3	%		41		0.1	%		751		0.5	%		144		0.3	%		84		1.4	%		1,152		0.4	%		1,161		0.4	%
Commerce - Sundry		1		0.0	%		1,179		2.4	%		303		0.9	%		12,302		8.2	%		1,703		3.5	%		620		10.3	%		16,108		5.4	%		16,683		5.5	%
Industry - Sundry		-		0.0	%		62		0.1	%		4,771		14.6	%		2,872		1.9	%		216		0.4	%		19		0.3	%		7,940		2.7	%		7,779		2.6	%
Sundry Services		69		0.7	%		2,843		5.7	%		2,753		8.4	%		27,280		18.1	%		2,973		6.0	%		559		9.3	%		36,477		12.2	%		36,866		12.1	%
Sundry		3,593		34.2	%		2,473		5.0	%		791		2.4	%		8,398		5.6	%		3,011		6.1	%		4		0.1	%		18,270		6.1	%		17,157		5.7	%
Total		10,503		100.0	%		49,489		100.0	%		32,619		100.0	%		150,732		100.0	%		49,286		100.0	%		6,028		100.0	%		298,657		100.0	%		303,481		100.0	%

⁽¹⁾ The amount includes financial guarantees provided and committed loans, do not includes securities and is net of allowance for loan losses.

⁽²⁾ Comprises trade of fuel.

26

Itaú Unibanco

Risk and Capital Management – Pillar 3

Remaining maturity of loan transactions

Remaining maturities of loan transactions (1)																	R$ million
	06/30/2017										03/31/2017
	up to 6 months		6 to 12 months		1 to 5 years		above 5 years		Total		up to 6 months		6 to 12 months		1 to 5 years		above 5 years		Total
Individuals		63,990		4,141		55,726		84,366		208,223		63,770		4,245		57,438		81,307		206,760
Rural Loans		52		8		50		6		116		42		31		52		6		131
Real State		72		38		1,165		57,972		59,247		82		35		1,165		56,962		58,244
Payroll		282		780		24,165		17,867		43,094		279		749		25,540		16,800		43,368
Vehicle and Leasing		411		960		12,356		53		13,780		453		1,072		12,915		52		14,492
Credit card		55,968		-		-		-		55,968		55,563		-		-		-		55,563
Financial Guarantees Provided		111		62		95		391		659		118		69		58		420		665
Personal Loans (Other)		7,094		2,293		17,895		8,077		35,359		7,233		2,289		17,708		7,067		34,297
Companies		85,147		30,624		100,637		67,839		284,247		85,810		30,670		102,764		68,414		287,658
Rural Loans		4,926		2,702		2,109		515		10,252		4,692		2,828		1,631		556		9,707
Investments		3,359		4,095		22,928		15,959		46,341		4,002		3,954		24,622		16,204		48,782
Import and Export		16,662		3,975		8,984		2,983		32,604		15,502		4,967		10,424		2,434		33,327
Working Capital, Discount Bonds and Guaranteed Account		50,230		11,982		54,207		23,308		139,727		50,447		12,709		53,963		23,587		140,706
Financial Guarantees Provided		9,561		7,670		8,349		23,709		49,289		10,806		6,040		8,272		24,425		49,543
Other		409		200		4,060		1,365		6,034		361		172		3,852		1,208		5,593
Total		149,137		34,765		156,363		152,205		492,470		149,580		34,915		160,202		149,721		494,418

⁽¹⁾ Do not include loan commitments.

Concentration on the Major Debtors

Concentration of Largest Clients with Credit Granting Characteristics													R$ million
	Exposure		% of portfolio			Exposure		% of portfolio			Exposure		% of portfolio
Loan, Lease and Other Credit Operations (1)	06/30/2017					03/31/2017					06/30/2016
Largest debtor		4,771		0.9	%		4,858		0.9	%		4,090		0.7	%
10 largest debtors		30,035		5.4	%		30,282		5.5	%		31,781		5.5	%
20 largest debtors		47,742		8.6	%		46,444		8.4	%		48,773		8.5	%
50 largest debtors		77,608		14.1	%		77,210		14.0	%		82,220		14.3	%
100 largest debtors		103,634		18.8	%		103,859		18.9	%		110,163		19.2	%

⁽¹⁾ The amounts include financial guarantees provided. Do not include loan commitments.

Concentration of Major Clients with Credit Granting Characteristics													R$ million
	Exposure		% of portfolio			Exposure		% of portfolio			Exposure		% of portfolio
Loan, Lease and Other Credit Operations and Securities (1)	06/30/2017					03/31/2017					06/30/2016
Largest debtor		6,621		1.1	%		7,859		1.2	%		7,709		1.1	%
10 largest debtors		41,075		6.5	%		43,068		6.8	%		42,124		6.8	%
20 largest debtors		66,190		10.5	%		68,485		10.9	%		75,580		11.2	%
50 largest debtors		109,057		17.4	%		110,097		17.5	%		122,706		18.2	%
100 largest debtors		143,635		22.9	%		145,713		23.1	%		162,512		24.1	%

⁽¹⁾ The amounts include financial guarantees provided. Do not include loan commitments.

27

Itaú Unibanco

Risk and Capital Management – Pillar 3

Overdue Amounts

Overdue Amounts: by Brazil Regions and Countries																					R$ million
	06/30/2017												03/31/2017
	15 to 60 days		61 to 90 days		91 to 180 days		181 to 360 days		Above 360 days		Total		15 to 60 days		61 to 90 days		91 to 180 days		181 to 360 days		Above 360 days		Total
Southeast		4,727		1,843		3,934		4,394		464		15,362		5,298		2,982		3,989		4,940		471		17,680
South		730		273		636		792		83		2,514		946		280		653		906		99		2,884
North		243		84		184		285		34		830		268		77		259		284		40		928
Northeast		733		338		809		1,091		103		3,074		840		315		752		1,231		123		3,261
Midwest		453		171		478		444		50		1,596		593		160		387		493		59		1,692
Brazil		6,886		2,709		6,041		7,006		734		23,376		7,945		3,814		6,040		7,854		792		26,445
Foreign		3,220		545		728		748		134		5,375		2,973		410		841		679		120		5,023
Total		10,106		3,254		6,769		7,754		868		28,751		10,918		4,224		6,881		8,533		912		31,468
Overdue Amounts: by Economic Sector																					R$ million
	06/30/2017												03/31/2017
	15 to 60 days		61 to 90 days		91 to 180 days		181 to 360 days		Above 360 days		Total		15 to 60 days		61 to 90 days		91 to 180 days		181 to 360 days		Above 360 days		Total
Public Sector		1		-		-		1		-		2		2		-		-		1		-		3
Private Sector		10,105		3,254		6,769		7,753		868		28,749		10,916		4,224		6,881		8,532		912		31,465
Companies		3,142		1,077		2,108		2,504		281		9,112		3,275		2,178		2,431		2,936		299		11,119
Industry and Commerce		1,174		568		1,088		1,447		188		4,465		1,511		406		1,075		1,840		190		5,022
Services		1,761		423		927		748		89		3,948		1,623		1,535		1,041		823		102		5,124
Primary		203		82		92		302		4		683		136		237		313		265		7		958
Other		4		4		1		7		-		16		5		-		2		8		-		15
Individuals		6,963		2,177		4,661		5,249		587		19,637		7,641		2,046		4,450		5,596		613		20,346
Total		10,106		3,254		6,769		7,754		868		28,751		10,918		4,224		6,881		8,533		912		31,468

Allowance for Loan Losses

In order to be hedged against losses arising from loan operations, Itaú Unibanco takes into consideration all the aspects that determine the client’s credit risk to establish the provision level that is appropriate to the risk incurred in each operation. For each operation, the assessment and the client or economic group rating, the operation rating, and the possible existence of past due amounts are taken into account and the volume of the regulatory provision is determined.

Allowance for Loan Losses - Quarterly evolution																				R$ million
	06/30/2017											03/31/2017
				Necessary											Necessary
	Opening Balance			accounting net provisions			Write-Off		Final Balance			Opening Balance			accounting net provisions (1)			Write-Off		Final Balance (2)
Public Sector		(8	)		2			1		(5	)		(6	)		(2	)		-		(8	)
Private Sector		(37,632	)		(5,122	)		5,342		(37,412	)		(37,425	)		(5,759	)		5,552		(37,632	)
Companies		(19,280	)		(2,206	)		1,898		(19,588	)		(17,663	)		(3,486	)		1,869		(19,280	)
Industry and Commerce		(6,950	)		(917	)		1,025		(6,842	)		(6,804	)		(1,241	)		1,095		(6,950	)
Services		(9,822	)		(875	)		641		(10,056	)		(9,084	)		(1,387	)		649		(9,822	)
Primary		(1,824	)		(409	)		230		(2,003	)		(1,752	)		(196	)		124		(1,824	)
Other		(684	)		(5	)		2		(687	)		(23	)		(662	)		1		(684	)
Individuals		(18,352	)		(2,916	)		3,444		(17,824	)		(19,762	)		(2,273	)		3,683		(18,352	)
Total		(37,640	)		(5,120	)		5,343		(37,417	)		(37,431	)		(5,761	)		5,552		(37,640	)

⁽¹⁾ Comprises the adjustment of R$ (402) due to initial application of CMN Resolution 4,512.

⁽²⁾ Comprises provisions for financial guarantees provided of R$ (1,884) (R$ (1,870) at 03/31/2017), registered in the liabilities, according to CMN Resolution 4,512 and BACEN Circular Letter 3,782.

28

Itaú Unibanco

Risk and Capital Management – Pillar 3

Mitigating Instruments

Itaú Unibanco uses guarantees aiming at increasing resilience in operations with credit risk. The using guarantees can be personal guarantees, secured guarantees, legal structures with mitigating power and netting arrangements.

To be considered as credit risk mitigation instrument, the guarantees need to comply with requirements and determinations of the regulations that govern them whether internal or external and be legally valid (effective), enforceable and regularly evaluated. In the case of secured guarantees, legal structures with mitigating effects and netting arrangements, mitigation depends on established methods approved by the business units responsible for managing credit risk and the central credit risk control area. Such methods take into account factors relating to the legal enforcement of the security, the costs involved in the process and the expected execution value, considering market volatility and liquidity. Additionally, concentration of these instruments in the credit portfolio is monitored on a regular basis. Lastly, personal guarantees and the purchase of protection through credit derivatives mitigate credit risk by substituting the taker’s risk parameters with those of the guarantor.

Itaú Unibanco also uses credit derivatives to mitigate the credit risk of its portfolios of securities. These instruments are priced based on models that use the fair value of market inputs, such as credit spreads, recovery rates, correlations and interest rates.

In order to use each type of mitigating instrument to calculate the regulatory capital, Itaú Unibanco compares the specifications of the instrument to the requirements provided for in the prudential regulations in force. In this process, the institution assesses the coverage level of mitigated exposures, the risk weights (FPR) of the mitigation instruments, maturity terms, and currencies of denomination or indexation, among other aspects.

In the case of credit transactions mitigated by fiduciary transfer or 1st-degree mortgage on residential property, mitigation is definite by the FPR applied to the exposure, as provided for in BACEN Circular 3,644. Therefore, these transactions are not subject to the provisions set forth in BACEN Circular 3,809.

The table below presents the total amount covered by mitigation instruments (collaterals and guarantees), calculated in accordance with BACEN Circular 3,809. As provided for in the Circular, at the beginning of each fiscal year, the institution must choose between the Simple or Comprehensive Approach for credit risk mitigation.

Total Mitigation					R$ million
	06/30/2017		03/31/2017		06/30/2016
Demand and time deposits, savings and own financial credit bills		307,295		311,961		314,593
FPR 0%		307,275		311,942		314,593
FPR 20%		20		19		-
Securities		45,688		26,325		43,052
FPR 0%		45,688		26,325		43,052
Personal Guarantee		40,425		40,657		40,012
FPR 0%		6,339		5,927		6,165
FPR 50%		33,746		33,746		33,848
FPR 85%		340		985		-
Credit Linked Notes (CLN)		7,423		8,158		-
FPR 0%		7,293		8,034		-
FPR 20%		130		123		-
Netting		1,451		1,742		-
FPR 0%		1,451		1,742		-

29

Itaú Unibanco

Risk and Capital Management – Pillar 3

Counterparty Credit Risk

Itaú Unibanco sees the counterparty credit risk as a possibility of noncompliance, by a given counterparty, with obligations related to the settlement of transactions that involve the trading of financial assets with a bilateral risk, encompassing of derivative financial instruments, settlement pending transactions, securities lending and repurchase transactions.

Itaú Unibanco’s structure for managing, monitoring and controlling the counterparty credit risk is included in credit risk structure, and only the risk modeling is included in the market risk structure.

To improve counterparty credit risk management, Itaú Unibanco has well-defined rules for calculating its exposure, and the models designed are used both for controlling the use of counterparty limits and for allocating capital. For derivatives, Itaú Unibanco uses the potential credit risk (PCR), interpreted as the value of the potential financial exposure that a transaction can attain upon maturity, and it is used to define utilization of credit risk limits attributed to counterparties. After the maturity of a derivatives contract, Itaú Unibanco’s practice is to set up a provision for the amounts receivable on these instruments.

Netting agreements are defined by CMN Resolution 3,263 and, as from January 2017, Itaú Unibanco has been considering this resolution in the calculation of its regulatory capital, in accordance with BACEN Circular 3,809.

According to BACEN Circular 3,644, for the calculation of the net global exposure to the counterparty credit risk arising from operations with derivative financial instruments, the application of the Future Potential Exposure Factor (FEPF) is considered. In the case of unsettled operations, the application of the Unsettled Operation Credit Conversion Factor (FCL) is considered.

Derivative Contracts Subject to Counterparty Credit Risk	R$ million
	06/30/2017
Settled in a settlement system (Stock Exchange) (1)		7,636
Notional Value		950,393
Potential Future Exposures		3,537
Gross Positive Value		4,099
Not settled in a settlement system (Over-the-Counter) – with collateral		-
Notional Value		5,536
Potential Future Exposures		224
Gross Positive Value		1,843
Effects of netting agreements		1,451
Effect of collateral		616
Not settled in a settlement system (Over-the-Counter) – without collateral		18,542
Notional Value		976,211
Potential Future Exposures		8,115
Gross Positive Value		10,428
Net exposure to derivatives		26,178

⁽¹⁾ Amounts regarding contracts settled in a clearing and settlement system in which the clearinghouse operates as central counterparty. As from the second quarter of 2017, Itaú Unibanco has been reporting the credit risk of counterparties in derivatives contracts settled in a settlement system, where FPR is 2%.

30

Itaú Unibanco

Risk and Capital Management – Pillar 3

Itaú Unibanco considers that there is counterparty credit risk in reverse repo agreements (purchase with resale commitment) when the difference between the amount paid and the security received (when the latter is eligible as a mitigator) is positive; and in repo agreements (sale with repurchase commitment), when the difference between the security delivered and the amount received is positive.

Repurchase Agreements Subject to Counterparty Credit Risk	R$ million
	06/30/2017
Settled in a settlement system (1)		1,697
Reverse repo agreements		1,668
Notional Value (2)		259,493
Effect of collateral (3)		257,825
Repo agreements		29
Notional Value (2)		186,901
Effect of collateral (3)		186,872
Not settled in a settlement system		3,617
Reverse repo agreements		126
Notional Value (2)		687
Effect of collateral (3)		560
Repo agreements		3,490
Notional Value (2)		119,503
Effect of collateral (3)		116,013
Net exposure to repurchase agreements		5,314

⁽¹⁾ Amounts regarding contracts settled in a clearing and settlement system (Stock Exchange, Selic or similar).

⁽²⁾ The notional value of repurchase agreements is similar to their positive gross value.

⁽³⁾ Cash and government securities with 0% FPR are used as collateral for counterparty credit risk exposure in repurchase agreements.

Other (1) Agreements Subject to Counterparty Credit Risk	R$ million
	06/30/2017
Notional Value (2)		14,870
Effects of netting agreements		-
Effect of collateral		-
Net exposure to other agreements subject to counterparty credit risk (3)		518

⁽¹⁾Includes securities agreements to be settled, as well as forex agreements, and rights on securities lending

⁽²⁾The notional value of these agreements is similar to their positive gross value.

⁽³⁾ Exposure value after application of FCL, according to BACEN Circular 3,444.

Exposure to Counterparty Credit Risk	R$ million
	06/30/2017
Net global exposure to counterparty credit risk		32,009
Net exposure to derivatives		26,178
Net exposure to repurchase agreements		5,314
Net exposure to other agreements subject to counterparty credit risk		518

31

Itaú Unibanco

Risk and Capital Management – Pillar 3

Acquisitions, Sale or Transfer of Financial Assets

The acquisition of financial assets follows the same policies and the same credit governance established for the portfolios originated at Itaú Unibanco, where decision-making is based on the objective assessment of the borrowers’ credit risk. Financial asset acquisitions can aim at increasing loan portfolio diversification or meeting the clients’ demands for liquidity. The purpose of the sale and transfer of financial assets is to meet investor demand for credit assets and be used as a portfolio credit risk management instrument.

Credit assignments (transfers of receivables) carried out through December 2011 were recorded in accordance with current regulation together with income recognition at the time of the assignment, regardless of the risks and benefits being retained or not.

Since January 2012, as determined by CMN Resolution 3,533 and supplementary regulation, accounting records take into consideration the retention or non-retention of risks and benefits on sale or transfers of financial assets.

Sale or Transfer of Financial Assets	R$ million
	06/30/2017		03/31/2017		06/30/2016
Balance of exposures assigned with significant withholding of risks and benefits		120		127		152
Balance of sale of exposure with substantial retention of risks and benefits		5,333		5,519		5,563
Credit rights Investments Fund (FIDC)		-		-		-
Securitization Companies		5,333		5,502		5,536
Financial institutions		-		17		27
Specific Purpose Company (SPE)		-		-		-
Balance of sale of exposure without substantial transfer or retention of risks and benefits		-		-		-

Sale or Transfer of Financial Assets									R$ million
	2nd quarter		1st quarter		4th quarter		3rd quarter		2nd quarter
	2017		2017		2016		2016		2016
Flow of sale exposure in the quarter with substantial transfer of risks and rewards		155		67		2,076		2,751		193
Credit rights Investments Fund (FIDC)		1		67		-		-		-
Securitization Companies		79		-		1,289		2,751		193
Financial institutions		75		-		86		-		-
Specific Purpose Company (SPE)		-		-		-		-		-
Other(1)		-		-		701		-		-

⁽¹⁾ Transfer of college credits held with the public sector.

Sale or Transfer of Financial Assets									R$ million
	2nd quarter		1st quarter		4th quarter		3rd quarter		2nd quarter
	2017		2017		2016		2016		2016
Total exposures assigned over the last 12 months which have been honored, repurchased or written-off		150		160		99		135		117

32

Itaú Unibanco

Risk and Capital Management – Pillar 3

Acquisition of Financial Assets					R$ million
	06/30/2017		03/31/2017		06/30/2016
Acquisitions of loan portfolios WITH the retention of assignor's risks and rewards
a) By type of exposure		925		1,264		2,698
Individuals - Payroll		-		-		-
Individuals - Vehicle and Leasing		771		1,009		1,949
Companies -Loans (CCB)		152		252		741
Companies - Other		2		3		8
b) By type of assignor		925		1,264		2,698
Credit rights Investments Fund (FIDC)		-		-		-
Securitization Companies		-		-		-
Financial institutions		925		1,264		2,698
Specific Purpose Company (SPE)		-		-		-

Acquisition of Financial Assets					R$ million
	06/30/2017		03/31/2017		06/30/2016
Acquisitions of loan portfolios with NO retention of assignor's risks and rewards
a) By type of exposure		3,086		3,519		4,805
Individuals - Payroll		3,086		3,519		4,805
b) By type of assignor		3,086		3,519		4,805
Credit rights Investments Fund (FIDC)		-		-		-
Securitization Companies		-		-		-
Financial institutions		3,086		3,519		4,805
Specific Purpose Company (SPE)		-		-		-

33

Itaú Unibanco

Risk and Capital Management – Pillar 3

Operations of Securitization

Itaú Unibanco’s portfolio includes securities arising from securitization processes. The portfolio is made up of Securitized Real Estate Loans (CRI), quotas of Credit Rights Investment Funds (FIDC) and Agribusiness Receivables Certificate (CRA) and debentures with securitization characteristics (issues whose flow of receipts is dependent on the performance of the underlying receivables).

The CRIs are backed by real estate loans and predominantly are not subordinated. The quotas of FIDCs are usually senior and backed by receivables, such as trade notes, promissory notes. The CRAs are backed by receivables linked to agribusiness. Debentures, in turn, are backed by credit portfolios and are not subordinated.

Exposure to securitization of FIDC, in the consolidated accounts, includes only fund units not consolidated in the Prudential Conglomerate. According to BACEN Circular 3,701, FIDC units when the institution has control or retains risks and benefits must be consolidated in the Prudential Conglomerate.

Itaú Unibanco classifies securities arising from securitization processes based on the governance of products determined, and the credit is approved at the proper authority levels. The balances of these operations are presented below.

Securitization Exposures (1)					R$ million
	06/30/2017		03/31/2017		06/30/2016
CRI		15,613		16,007		17,437
Mortgage Loans		15,613		16,007		17,437
Single-Tranche		13,690		13,986		15,307
Subordinated		1,923		2,021		2,130
CRA		18		61		22
Credit Related to Agribusiness		18		61		22
Single-Tranche		18		61		22
FIDC		21		20		-
Credit Rights		21		20		-
Senior		21		20		-
Subordinated		-		-		-
Debenture (2)		196		203		337
Loan portfolio		196		203		337
Single-Tranche		196		203		337
Total		15,848		16,291		17,796

⁽¹⁾ Traditional securitization.

⁽²⁾ Debentures with securitization characteristics, because their flow of receipts is dependent on the performance of the underlying receivables.

Itaú Unibanco follows risk retention guidelines of CMN Resolution 3,533.

Following is the summary of the securitization activity in the period:

Securitization Activities in the Period(1)									R$ million
	2nd quarter 2017		1st quarter 2017		4th quarter 2016		3rd quarter 2016		2nd quarter 2016
CRI		187		132		745		216		555
Mortgage Loans		187		132		745		216		555
FIDC		9		237		27		100		-
Credit Rights		9		237		27		100		-
CRA		625		423		2,175		767		2,025
Credit Rights		625		423		2,175		767		2,025
Debenture (2)		-		-		13		-		-
Loan portfolio		-		-		13		-		-
Total		821		792		2,960		1,083		2,580

⁽¹⁾ Traditional securitization.

⁽²⁾ Debentures with securitization characteristics, because their flow of receipts is dependent on the performance of the underlying receivables.

It should be noted that the portion of RWA_CPAD attributable to securitization exposure did not exceed 5% of the total on June 30, 2017.

Itaú Unibanco calculates gains and losses on the process of securitization taking into account its operations both as originator (the participant that assigns a portfolio for securitization) and as investor (a dealer in securitized paper).

As originator, gains and losses are calculated as the difference between the sum received for assets transferred to the securitizing institutions and the book value of the portfolio. As investor, the calculation takes into account the difference between the sale amount and the book value of the securitized paper.

Gains and losses on securitization are disclosed when they are material.

34

Itaú Unibanco

Risk and Capital Management – Pillar 3

Credit Derivatives

Itaú Unibanco buys and sells credit protection mainly related to securities of the Brazilian government and securities of Brazilian listed companies in order to meet the needs of its customers. When Itaú Unibanco sells contracts for credit protection, the exposure for a given reference entity may be partially or totally offset by a credit protection purchase contract of another counterparty for the same reference entity or similar entity. The credit derivatives for which Itaú Unibanco is protection seller are credit default swap (CDS) and total return swap (TRS).

CDS is credit derivative in which, upon a default related to the reference entity pursuant to the terms of the contract, the protection buyer is entitled to receive, from the protection seller, the amount equivalent to the difference between the face value of the CDS contract and the fair value of the liability on the date the contract was settled, also known as the recovered amount. The protection buyer does not need to hold the debt instrument of the reference entity for it to receive the amounts due pursuant to the CDS contract terms when a credit event occurs.

TRS is a transaction in which a party swaps the total return of a reference entity or of a basket of assets for regular cash flows, usually interest and a guarantee against capital loss. In a TRS contract, the parties do not transfer the ownership of the assets.

The maximum potential loss that may be incurred with the credit derivative is based on the notional amount of the derivative. Itaú Unibanco believes that, based on its historical experience, the maximum potential loss does not represent the expected loss. It happens because, when a loss event occurs, the amount of maximum potential loss should be reduced from the notional amount by the recoverable amount.

The credit derivatives sold are not covered by guarantees, and during the second quarter of 2017, Itaú Unibanco has not incurred any loss related to credit derivative contracts.

The table below shows the nominal value of purchased credit derivatives that are identical to those for which Itaú Unibanco acts as seller of protection underlying values.

Notional Amount of Credit Derivatives Held in Portfolio							R$ million
	06/30/2017			03/31/2017			06/30/2016
Risk Transferred		5,210			3,519			4,105
Credit Default Swap (CDS)		5,210			3,519			4,105
Total Return Swap (TRS)		-			-			-
Risk Received		(7,838	)		(7,367	)		(8,055	)
Credit Default Swap (CDS)		(7,838	)		(7,367	)		(8,055	)
Total Return Swap (TRS)		-			-			-
Total		(2,628	)		(3,848	)		(3,950	)
Required capital of Risk Received		66			60			336

35

Itaú Unibanco

Risk and Capital Management – Pillar 3

6 Market Risk

6.1 Framework and Treatment

Market risk is the possibility of losses resulting from fluctuations in the market values of positions held by a financial institution, including the risk of operations subject to variations in foreign exchange rates, interest rates, price indexes, equity and commodity prices, with various indexes based on these risk factors.

At Itaú Unibanco, market risk management is the process by which management monitors and controls risk of variations in the financial instruments, due to market movements, while aiming to optimize the risk-return ratio through an adequate limits structure, alerts, effective risk management models and tools.

Itaú Unibanco’s institutional policies and general market risk management framework are in line with the principles of CMN Resolution 3,464, and subsequent amendments. These principles guide the institution’s approach to market risk control and management across all business units and legal entities of Itaú Unibanco.

The document that details the market risk control institutional policy is on the Investor Relations website www.itau.com.br/investor-relations, in the route: Corporate Governance, Rules and Policies, Public Access Report - Market Risk.

Itaú Unibanco’s market risk management strategy is aimed at balancing corporate business goals, taking into account, among other factors:

· Political, economic and market conditions;

· The profile of Itaú Unibanco´s portfolio; and

· Capacity to act in specific markets.

Itaú Unibanco’s market risk management framework is subject to the governance and hierarchy of corporate bodies and to a structure of limits and alerts, with specific limits assigned to different levels and classes of market risk (such as interest rate risk, foreign exchange risk, among others). This structure of limits and alerts covers from aggregated risk indicators at the portfolio level, to more granular limits at the individual desk level. The market risk limits framework extends to the risk factor level, with specific limits and is aimed at improving the process of risk monitoring and understanding as well as preventing risk concentration. Limits and alerts are calibrated based on projections of future balance sheets, stockholders’ equity, liquidity, complexity and market volatility, as well as the Itaú Unibanco’s risk appetite. Limits are monitored on a daily basis and both breaches and potential breaches of limits are reported and discussed in accordance with the following procedure:

· within one business day, for management of responsible business units and executives in the risk control area and business areas; and

· within one month, for the competent corporate bodies.

Daily risk reports, used by the business and control areas, are distributed to the executive officers. In addition, Itaú Unibanco’s market risk management and control process is subject to periodic reviews, to ensure it reflects alignment with best market practices, and continues to improve over time.

The structure of limits and alerts follows the Board of Directors guidelines. These are approved by corporate bodies. The process for defining limit levels and reporting violations is subject to the approval governance of Itaú Unibanco institutional policies. The established information flow is intended to provide this information to the various executive levels of the institution, including members of the Board of Directors through the committees responsible for risk management. This structure of limits and alerts increases control effectiveness and coverage, and is reviewed at least once a year.

The key principles underlying Itaú Unibanco’s market risk control structure are as follows:

· Provide visibility and comfort for all senior management levels that market risks assumed must be in line with Itaú Unibanco risk-return objectives;

· Provide disciplined and informed dialogue on the overall market risk profile and its evolution over time;

· Increase transparency as to how the business works to optimize results;

· Provide early warning mechanisms to facilitate effective risk management, without obstructing the business objectives; and

· Monitor and avoid concentration of risks.

36

Itaú Unibanco

Risk and Capital Management – Pillar 3

Market risk is controlled by an area independent of the business units, which is responsible for the daily activities: (i) measuring and assessing risk, (ii) monitoring stress scenarios, limits and alerts, (iii) applying, analyzing and stress testing scenarios, (iv) reporting risk to the individuals responsible in the business units, in compliance with Itaú Unibanco´s governance, (v) monitoring the measures needed to adjust positions and/or risk levels to make them viable, and (vi) supporting the secure launch of new financial products. For this, there is a structured process of communication and information flow, which provides information to corporate bodies and ensures compliance with the requirements of Brazilian and foreign regulatory agencies.

Itaú Unibanco hedges transactions with clients and proprietary positions, including its foreign investments, in order to mitigate risk arising from fluctuations in market risk factors and maintain positions on the limits. Derivatives are commonly used for these hedging activities. When these transactions are considered as hedges for accounting purposes, specific supporting documentation is provided, including ongoing follow-up of hedge effectiveness (retrospective and prospective) and other changes in the accounting process. The accounting and managerial hedging procedures are governed by the institutional polices of Itaú Unibanco.

Hedge accounting considerations are presented in detail in Note 7g V – “Accounting hedge” to the Complete Financial Statements, that can be found on the website www.itau.com.br/investor-relations.

Market risk framework categorizes transactions as part of either the Trading Book or the Baking Book, in accordance with general criteria established by CMN Resolution 3,464 and BACEN Circular 3,354.

Trading Book is composed of all trades with financial and commodity instruments (including derivatives) undertaken with the intention of trading.

Banking Book is predominantly characterized by portfolios originated from the banking business and operations related to balance sheet management. As a general rule, this book’s portfolios are intended to be either held to maturity, or sold in the medium and in the long term.

Market risk exposures inherent in various financial instruments, including derivatives, are composed of various risk factors that refer to a market parameter whose variation impacts a position’s valuation. The main risk factors measured by Itaú Unibanco are as follow:

· Interest rate: risk of loss on transactions subject to changes in interest rates, foreign currency coupons or price-index coupons;

· Currencies: risk of loss on transactions subject to currency variations;

· Equities: risk of loss on transactions subject to changes in the price of equities;

· Commodities: risk of loss on transactions subject to changes in commodities prices.

The CMN has regulations establishing the segregation of market risk exposure at a minimum into the following categories: interest rates, foreign exchange rates, equities and commodities. Brazilian inflation indexes are treated as a group of risk indicators and receive the same treatment of the others risk indicators, such as interest rates and FX rates, and follows the governance and risk limits framework adopted by Itaú Unibanco for market risk management.

Market risk is analyzed based on the following key metrics:

· Value at Risk (VaR): a statistical metric that quantifies the maximum potential economic loss expected in normal market conditions, considering a defined holding period and confidence interval;

· Losses in Stress Scenarios (Stress Testing): a simulation technique to evaluate the impact, in the assets, liabilities and derivatives of the portfolio, of various risk factors in extreme market situations (based on prospective and historic scenarios);

· Stop Loss: metrics that trigger a management review of positions, if the accumulated losses in a given period reach specified levels;

· Concentration: cumulative exposure of certain financial instrument or risk factor calculated at market value (MtM - Mark to Market); and

· Stressed VaR: statistical metric derived from VaR calculation, aimed at capturing the biggest risk in simulations of the current portfolio, taking into consideration the observable returns in historical scenarios of extreme volatility.

In addition to the risk metrics described above, sensitivity and loss control measures are also analyzed. They include:

· Gap Analysis: accumulated exposure of the cash flows by risk factor, which are marked-to-market and positioned by settlement dates;

· Sensitivity (DV01 – Delta Variation Risk): impact on the market value of cash flows when a 1 basis point change is applied to current interest rates or on the index rates; and

37

Itaú Unibanco

Risk and Capital Management – Pillar 3

· Sensitivities to Various Risk Factors (Greeks): partial derivatives of a portfolio of options on the prices of the underlying assets, implied volatilities, interest rates and time.

Itaú Unibanco uses proprietary systems to measure the consolidated market risk. The processing of these systems takes place in an access-controlled environment, being highly available, which has data safekeeping and recovery processes, and counts on such an infrastructure to ensure the continuity of business in contingency (disaster recovery) situations.

6.2 Portfolio Analysis

Interest rate risk in the banking book

Interest rate risk corresponds to the potential loss associated with changes in market interest on index, maturity and investment and funding mismatches. The interest rate risk management process of transactions classified in the banking book is consistent with the corporate bodies governance and hierarchy, and the limits approved for risk market management. A mark-to-market methodology is adopted for the different products by calculating the sensitivity to the changes in interest rates, the value at risk (VaR), and stress tests are conducted to the entire potfolio,as established in Itaú Unibanco’s institutional policies.

In treating the loan portfolios with material early settlements, the original maturities of the transactions are adjusted for the monthly revisions of their parameters, estimated from their historic bases, which accelerate the decrease of the originally contracted payment flows to better reflect the expected client behavior.

Remainders of products with no definite expiry date, such as demand deposits and savings accounts, are included in the statistics on the basis of past and seasonal experience. The core portion is distributed over time, thus generating an exposure to changes in interest rates, pursuant to internally approved methodologies.

The table below shows the sensitivity of the amount of the banking book positions to changes in interest rate curves, using the methodology and stress scenarios adopted to manage this portfolio’s risks at Itaú Unibanco for the second quarter of 2017.

Sensibility of Banking Position (1)								R$ million
	Exposures	06/30/2017
Risk factors	Risk of variation in:	Scenario I			Scenario II			Scenario III
Interest Rate	Fixed Income Interest Rates in reais		(8	)		(1,788	)		(3,524	)
Foreign Exchange Linked	Foreign Exchange Linked Interest Rates		(4	)		(334	)		(654	)
Price Index Linked	Interest of Inflation coupon		(2	)		(232	)		(443	)
TR	TR Linked Interest Rates		1			(125	)		(295	)

⁽¹⁾ Amounts net of tax effects.

In order to measure these sensitivities, the following scenarios are used:

·   Scenario I: Shocks of 1 base point in interest fixed rates, currency coupon, inflation, interest rate indexes;

·   Scenario II: Shocks of 25% in interest fixed rates, currency coupon, inflation, interest rate indexes, both for growth and fall, considering the largest resulting losses per risk factor;

·   Scenario III: Shocks of 50% in interest fixed rates, currency coupon, inflation, interest rate indexes, both for growth and fall, considering the largest resulting losses per risk factor.

38

Itaú Unibanco

Risk and Capital Management – Pillar 3

Evolution of the Trading Book

The evolution of the Trading Book, broken down by major risk factors, is tabulated below:

Total Value of Trading Position													R$ million
	06/30/2017					03/31/2017					06/30/2016
	Long		Short			Long		Short			Long		Short
Interest Rates		160,868		(235,883	)		142,946		(184,785	)		146,318		(191,269	)
Foreign Exchange		129,684		(125,049	)		171,535		(164,981	)		102,354		(92,536	)
Equities		1,662		(1,801	)		1,861		(2,037	)		967		(1,181	)
Commodities		1		(0	)		8		(0	)		6		(18	)

Evolution of the Derivatives Portfolio

The main purpose of the derivative positions in the Banking Book and Trading Book is to manage risks in these position and in the corresponding risk factors. The evolution of Itaú Unibanco’s derivatives portfolio, broken down by group of risk factor, by the existence or absence of a central counterparty (exchange or over-the-counter market) and whether it is in Brazil or abroad, is presented below:

Derivatives: Trades in Brazil - Trading + Banking - With Central Counterparty													R$ million
	06/30/2017					03/31/2017					06/30/2016
	Long		Short			Long		Short			Long		Short
Interest Rates		406,878		(500,960	)		355,457		(431,345	)		356,695		(484,713	)
Foreign Exchange		56,874		(77,407	)		67,026		(87,979	)		107,939		(115,029	)
Equities		1,973		(1,401	)		3,610		(2,915	)		3,605		(3,120	)
Commodities		350		(296	)		327		(388	)		630		(568	)
Derivatives: Trades in Brazil - Trading + Banking - Without Central Counterparty													R$ million
	06/30/2017					03/31/2017					06/30/2016
	Long		Short			Long		Short			Long		Short
Interest Rates		272,394		(286,835	)		267,798		(268,624	)		304,295		(300,243	)
Foreign Exchange		266,403		(281,525	)		254,960		(271,046	)		175,846		(208,013	)
Equities		24,302		(24,376	)		26,251		(26,251	)		23,622		(23,594	)
Commodities		138		(181	)		276		(207	)		151		(224	)
Derivatives: Foreign Trades - Trading + Banking - With Central Counterparty													R$ million
	06/30/2017					03/31/2017					06/30/2016
	Long		Short			Long		Short			Long		Short
Interest Rates		1,460		(3,235	)		2		(1,741	)		6		(918	)
Foreign Exchange		109,699		(105,818	)		138,292		(135,393	)		115,328		(113,737	)
Equities		225		(391	)		176		(288	)		172		(153	)
Commodities	-		-			-		-			-		-
Derivatives: Foreign Trades - Trading + Banking - Without Central Counterparty													R$ million
	06/30/2017					03/31/2017					06/30/2016
	Long		Short			Long		Short			Long		Short
Interest Rates		285,496		(288,525	)		244,842		(257,663	)		184,788		(190,297	)
Foreign Exchange		1,011,182		(1,008,776	)		924,292		(911,143	)		619,089		(614,453	)
Equities		578		(578	)		549		(549	)		825		(825	)
Commodities		-		-			-		-			-		-

39

Itaú Unibanco

Risk and Capital Management – Pillar 3

VaR – Consolidated Itaú Unibanco

Consolidated VaR of Itaú Unibanco Holding is calculated through the Historical Simulation methodology, which fully reflects all its positions based on the historical series of asset prices.

As from the third quarter of 2016, Itaú Unibanco has been calculating VaR for the regulatory portfolio (exposure of the trading portfolio and exposure to foreign currency and commodities of the banking portfolio) according to internal models approved by BACEN. Thus, details of risk factors (shown in the VaR – Consolidated and VaR and Stressed VaR Internal Model tables – Regulatory Portfolio) have been standardized to comply with BACEN Circular 3,646.

The Consolidated Total VaR table provides an analysis of the exposure to market risk of Itaú Unibanco portfolios.

VaR - Itaú Unibanco Holding(1)							R$ million
VaR per Risk Factor Group	06/30/2017			03/31/2017			06/30/2016
Brazilian Interest rates		666.5			759.4			488.6
Currencies		6.5			20.6			16.3
Equities		41.4			42.9			63.3
Commodities		4.0			1.1			2.2
Diversification effect		(257.6	)		(393.1	)		(339.2	)
Total VaR		460.8			430.9			231.2
Maximum Total VaR of the Quarter		874.0			452.6			237.5
Average Total VaR of the Quarter		504.3			363.7			205.9
Minimum Total VaR of the Quarter		339.4			304.8			167.9

⁽¹⁾ Considers one-day holding period and 99% confidence interval.VaR per Risk Factor Group includes foreign units informations.

Itaú Unibanco maintained its conservative and diversification management style, having operated within low limits in relation to its capital in the period. The Total Average VaR for the quarter remained below 1% of Itaú Unibanco’s stockholders’ equity.

The increase on total VaR relative to the previous quarter was mainly due to the higher volatility in the market.

40

Itaú Unibanco

Risk and Capital Management – Pillar 3

VaR and Stressed VaR Internal Model – Regulatory Portfolio

Itaú Unibanco uses the historical simulation methodology to calculate both the historical and the stressed VaR of its regulatory portfolio (exposure of the trading portfolio and exposure to foreign currency and commodities of the banking portfolio). The assumption of the historical VaR methodology is that the expected distribution of profits and losses in a portfolio over a time horizon can be estimated from the past behavior of the market risk factors to which the portfolio is exposed. To calculate VaR for non-linear instruments, a full valuation is performed, without potential simplification in the calculation.

VaR is calculated with a confidence interval of 99%, over a 4-year period (1000 business days) and a holding period that varies according to the portfolio’s market liquidity, taking a minimum horizon of 10 business days. Additionally, using a conservative approach, VaR is calculated daily, with and without weighing for volatility, and the final VaR is the more restrictive of the two results.

The Stressed VaR is derived from the calculation of VaR, with a confidence interval of 99% and a horizon of 10 days, simulating a specific period of stress in the institution’s current portfolio. Itaú Unibanco estimates the stressed VaR over the past one-year period of stress (252 business days). This period is selected on the basis of historical market data since January 2004, in compliance with BACEN Circular 3,646, so as to allow for an estimate of VaR in a past period of significant market stress.

Itaú Unibanco’s Regulatory Portfolio VaR and Stressed VaR, based on the “historical simulation” methodology, is presented below.

VaR - Itaú Unibanco - Regulatory Portfolio (1)																R$ million
	06/30/2017						03/31/2017						06/30/2016
VaR per Risk Factor Group	VaR (2)			Stressed VaR			VaR (2)			Stressed VaR			VaR (2)			Stressed VaR
Brazilian Interest rates		61.2			283.1			41.4			197.9			48.5			316.0
Currencies		4.6			19.1			10.6			44.1			11.0			24.2
Equities		7.9			7.7			13.1			19.1			12.2			14.2
Commodities		4.0			9.2			1.0			4.6			2.1			12.2
Diversification effect		(20.0	)		(117.3	)		(22.8	)		(170.8	)		(26.9	)		(96.4	)
Total VaR		57.7			201.8			43.3			94.9			46.9			270.2
Maximum Total VaR of the Quarter		102.8			345.0			65.5			164.0			58.4			270.2
Average Total VaR of the Quarter		41.9			134.6			46.8			119.5			33.8			138.6
Minimum Total VaR of the Quarter		15.3			56.8			30.0			85.2			16.2			77.5

(1)VaR Historical Simulation approach. Amounts reported consider 99% confidence interval. External Units are not cosidered.

(2)Amounts reported consider one-day holding period.

41

Itaú Unibanco

Risk and Capital Management – Pillar 3

Stress Testing

In addition to using a probabilistic risk measurement such as VaR, Itaú Unibanco also analyzes the risk in extreme scenarios under a wide range of different stress testings, so as to identify significant losses that could occur in extreme market conditions, both based on past crises or on predetermined shocks in the risk factors.

Different methods are used to generate stress scenarios so as to provide the greatest possible coverage of situations that could expose the institution’s portfolio to substantial losses. One factor that has a major bearing on the test results is the correlation between the assets and the respective risk factors, and this effect is simulated in various ways in the different scenarios tested.

The stress testing results are analyzed by risk factors on a separate and consolidated basis, allowing the institution to see clearly where the major risks lie and supporting management decisions.

The results of these stress testings are routinely analyzed and reported to Treasury and to senior management, so the market risk is controlled considering possible extreme market conditions and their effects on the institution’s portfolio.

Backtesting

The effectiveness of the VaR model is validated by the use of backtesting techniques, comparing hypothetical and effective daily results with the estimated daily VaR. The number of exceptions to the VaR pre-established limits should be consistent, within an acceptable margin, with the hypothesis of 99% confidence interval, considering a range of 250 business days (ending in June 30, 2017). Confidence intervals of 97.5% and 95%, and periods of 500 and 750 business days are also considered. The backtesting analysis presented below considers the ranges suggested by the Basel Committee on Banking Supervision (BCBS). The ranges are divided into:

· Green (0 to 4 exceptions): corresponds to backtesting results that do not suggest any problem with the quality or accuracy of the adopted models;

· Yellow (5 to 9 exceptions): refers to an intermediate range group, which indicates an early warning and/or monitoring and may indicate the need to review the model; and

· Red (10 or more exceptions): demonstrates the need for improvement actions.

According to BACEN Circular 3,646, hypothetical testing consists of applying market price variations for a specific day to the portfolio balance at the end of the preceding business day. The effective test is the variation in the portfolio value up to the end of the day, including intraday transactions and excluding amounts not related to market price variations, such as fees, brokerage fees and commissions.

The Backtesting with Confidence interval of 99%, and period of 250 business days did not show failures in relation to effective and hypothetical results in the period.

Pricing of Financial Instruments

To price its portfolios, Itaú Unibanco uses, where possible, price quotes seen in financial markets and published by reliable external sources, or, if quotes are not available from specialized sources, estimates from pricing models representing the fair value of its positions. It should be noted that the pricing models are verified for accuracy, by regular reviews of the market references and data used.

The pricing parameters used by Itaú Unibanco include interest rates, foreign exchange rates, the prices of securities, equities, commodities, derivatives contracts, indices, and volatilities.

Prices are calculated by an independent area (pricing), and are also independently validated from price information, volatility curves and surfaces (IPV – Independent price validation), to ensure that the information is consistent and accurate when compared with market sources.

42

Itaú Unibanco

Risk and Capital Management – Pillar 3

7 Operational Risk

7.1 Framework and Treatment

For Itaú Unibanco the operational risk is defined as the possibility of losses arising from failure, deficiency or inadequacy of internal process, people or systems or from external events that affect the achievement of strategic, tactical or operational objectives. It includes legal risk associated with inadequacy or deficiency in contracts signed by the institution, as well as penalties due to noncompliance with laws and punitive damages to third parties arising from the activities undertaken by the institution.

Itaú Unibanco internally classifies its risk events in:

· Internal fraud;

· External fraud;

· Labor claims and deficient security in the workplace;

· Inadequate practices related to clients, products and services;

· Damages to own physical assets or assets in use by Itaú Unibanco;

· Interruption of Itaú Unibanco’s activities;

· Failures in information technology systems;

· Failures in the performance, compliance with deadlines and management of activities at Itaú Unibanco.

In line with the principles of CMN Resolution 3,380 and BACEN Circular 3,647, Itaú Unibanco has an operational risk management structure and institutional policy, which are annually approved by the Board of Directors and are applicable to its local and foreign companies and subsidiaries.

Itaú Unibanco has a governance process that is structured through forums and corporate bodies composed of senior management, which, in turn, report to the Board of Directors, and by well-defined roles and responsibilities in order to reinforce the segregation of the business and management and control activities, ensuring independence between the areas and, consequently, well-balanced decisions with respect to risks. This is reflected in the risk management process carried out on a decentralized basis under the responsibility of the business areas and by a centralized control carried out by the internal control, compliance and operational risk department.

The objective of managing operational risk is to support decisions made, seeking always to identify and assess risks correctly, to create value for the shareholders and to protect the assets and the image of Itaú Unibanco. For this purpose, the managers of the executive areas use corporate methods constructed and made available by the internal control, compliance and operational risk area, so as to guarantee the quality of the control environments and comply with internal guidelines and current regulations.

Among the methodologies and tools used are the self-evaluation and the map of the institution’s prioritized risks, the approval of processes, products, and system development products and projects, the monitoring of key risk indicators that and the database of operational losses, guaranteeing a single conceptual basis for managing processes, systems, projects and new products and services.

Operational risk management includes conduct risk, which is subject to mitigating procedures to assess product design (suitability) and incentive models. The inspection area is responsible for fraud prevention. Irrespective of their origin, specific cases may be handled by risk committees and integrity and ethics committees.

Within the governance of the risk management process, the consolidated reports on risk monitoring, controls, action plans and operational losses are regularly presented to the business area executives.

It is worth noting that the dissemination of the risk and control culture to the employees by means of training is an important pillar, aimed at providing a better understanding of the matter and playing a relevant role in its mitigation.

The document “Public Report – Integrated Management of Operational Risk /Internal Controls/Compliance”, summarized version of the institutional operational risk management policy can be found on the website www.itau.com.br/investor- relations under Corporate Governance, Rules and Policies, Public Access Report – Operational Risk.

43

Itaú Unibanco

Risk and Capital Management – Pillar 3

7.2 Crisis Management and Business Continuity

The purpose of Itaú Unibanco’s Business Continuity Program is to protect its employees, ensure the continuity of the critical functions of its business lines, safeguard revenue and sustain both a stable financial market in which it operates and the trust of its clients and strategic partners in the provision of services and products.

It is composed of procedures for relocating and/ or recovering operations in response to a variety of interruption levels, and can be divided into two key elements:

· Crisis Management: centralized communication and response processes to manage business interruption events and any other types of threats to the image and reputation of its identity before its employees, clients, strategic partners and regulators. The structure has a command center that constantly monitors the daily operations, as well as the media channels in which Itaú Unibanco is mentioned. The success of Crisis Management takes place through the focal agents, who are the representatives appointed by the business areas and that work in the monitoring of potential problems, resolution of crisis, resumption of business, improvement of processes and search for prevention actions;

· Business Continuity Plans (BCP): documents with procedures and information, developed, consolidated and maintained available for use during possible incidents, allowing the resumption of critical activities in acceptable terms and conditions. For the quick and safe resumption of the operations, Itaú Unibanco has established, in its BCP, corporate wide and customized actions for its lines of business by means of:

- Disaster Recovery Plan: focused on the recovery of its primary data center, ensuring the continuity of the processing of critical systems within minimum pre-established periods;

- Workplace Contingency Plan: employees responsible for carrying out critical business functions have alternative facilities to perform their activities in the event the buildings in which they usually work become unavailable. There are approximately 2,000 contingency dedicated seats that are fully equipped to meet the needs of the business areas in emergency situations.

- Emergency Plan: procedures aimed at minimizing the effects of emergency situations that may impact Itaú Unibanco’s facilities, with a preventive focus;

- Processes Contingency Plan: alternatives (Plan B) to carry out the critical processes identified in the business areas.

In order to keep the continuity solutions aligned with the business requirements (processes, minimum resources, legal requirements, etc) the Program applies the following tools to understand the institution:

- Business Impact Analysis (BIA): evaluates the criticality and resumption requirement of the processes that support the delivery of products and services. Through this analysis the businesses’ resumption priorities are defined.

- Threats and Vulnerabilities Analysis (AVA): identification of threats to the locations where Itaú Unibanco buildings are located. The control’s efficiency is evaluated against the potential threats in order to eventually identify vulnerabilities so that controls are adjusted or implemented to enhance the resilience level of the firm’s critical facilities.

44

Itaú Unibanco

Risk and Capital Management – Pillar 3

7.3 Independent Validation of Risk Models

The operational risk, internal controls and compliance integrated management is subject to an internal policy approved by the Board of Directors, and is structured on three lines of defense, as described in section “1.3 Risk and Capital Governance.”

According to best market practices, Itaú Unibanco validates the processes and risk models independently. This is done by a department which is separate from the business and risk control areas, to ensure that its assessments are independent.

The validation method, defined in an internal policy, meets regulatory requirements such as those of BACEN Circulars 3,646 and 3,674. The validation stages include:

· Verification of mathematical and theoretical development of the models;

· Qualitative and quantitative analysis of the models, including the variables, construction of an independent calculator and the use of appropriate technical;

· When applicable, comparison with alternative models and international benchmarks;

· Backtesting of the model;

· The correct implementation of the models in the systems used.

Additionally, the validation area assesses the stress testing program.

The performance of the independent validation area and the validation of the processes and models are assessed by Internal Audit and reported to the specific senior management committees. Action plans are prepared to address opportunities identified during the independent validation process, and are monitored by the 3 lines of defense and by senior management until the conclusion.

45

Itaú Unibanco

Risk and Capital Management – Pillar 3

8 Liquidity Risk

8.1 Framework and Treatment

Liquidity risk is defined as the likelihood of the institution not being able to effectively honor its expected and unexpected obligations, current and future, including those from guarantees commitment, without affecting its daily operations or incurring significant losses.

The liquidity control risk is carried out by an independent group of the business units and is responsible for determining the composition of the reserve, proposing assumptions for the performance of cash flows, identifying, assessing, monitoring, controlling and reporting on a daily basis the exposure to liquidity risk in different timeframes, proposing liquidity risk limits in accordance with the group risk appetite, communicating any mismatches, considering liquidity risk on an individual basis in the countries where Itaú Unibanco operates, simulating the behavior of cash flows in stress conditions, assessing and reporting in advance the risks inherent to new products and operations, as well as reporting on the information required by the regulatory agencies. All activities are subject to assessment by the independent validation, internal controls and audit departments.

The liquidity risk measurement comprises all financial trades of the companies of Itaú Unibanco, as well as possible contingent and unexpected exposures, such as those derived from settlement services, provision of sureties and guarantees and credit lines contracted and not used. This process is carried out through corporate systems and owned applications that are developed and managed internally.

The liquidity policies of management and associated limits are established based on prospective scenarios and on definitions from senior management. These scenarios are regularly reviewed through the analysis of cash needs, due to unusual market situations or as a result of strategic decisions made by Itaú Unibanco.

The document that details the liquidity risk control institutional policy is on the Investor Relations website www.itau.com.br/investor-relations, in the route: Corporate Governance, Rules and Policies, Public Access Report - Liquidity Risk.

Itaú Unibanco manages and controls liquidity risk on a daily basis, through governance approved at corporate bodies, which provides, among other activities, the adoption of minimum liquidity limits, sufficient to absorb possible cash losses under situations of stress, measured by means of both in-house and regulatory methodologies.

Additionally, and pursuant to the requirements of CMN Resolutions 4,090 and BACEN Circular 3,749, Itaú Unibanco makes monthly delivery of its Liquidity Risk Statements (DLR) to BACEN and the following items are regularly prepared and submitted to the senior management for monitoring and decision support:

· Different scenarios for liquidity projections;

· Contingency plans for crisis situations;

· Reports and charts to enable monitoring risk positions;

· Assessment of funding costs and alternatives;

· Tracking the sort of funding sources through a continuous control of funding sources considering counterparty type, maturity and other aspects.

46

Itaú Unibanco

Risk and Capital Management – Pillar 3

8.2 Liquidity Coverage Ratio (LCR)

The Liquidity Coverage Ratio (LCR), which is calculated as required by BACEN, in line with the Basel international standard, is defined as follows:

·     HQLA – High Quality Liquid Assets = correspond to inventories, in some cases weighted by a discount factor, of assets that remain liquid in the market even in periods of stress, that can easily be converted into cash and that are classified as low risk;

·     Outflows_s = total potential cash outflows for a 30-day horizon, calculated for a standard stress scenario as defined by BACEN Circular 3,749;

·     Inflows_s = total potential cash inflows for a 30-day horizon, calculated for a standard stress scenario as defined by BACEN Circular 3,749.

According to the instructions in BACEN Circular 3,775, banks with total assets exceeding R$100 billion have since October 2015 been required to submit a monthly LCR to BACEN, as a consolidated report for the institutions belonging to the Prudential Conglomerate. This indicator is subject to a progressive minimum regulatory requirement. The timeline of the LCR is presented below, with a minimum requirement of 60% as from October 2015, increasing gradually until it reaches 100% in January 2019.

Schedule for limits to be observed	From January 1st
	2015			2016			2017			2018			2019
Liquidity Coverage Ratio (LCR)		60	%(1)		70	%		80	%		90	%		100	%

⁽¹⁾ From October 1^st 2015

The following table shows the average of the LCR reference quarter and of the non-weighted and weighted amounts, according to definition of the metrics:

Information on the Liquidity Coverage Ratio (LCR)														R$ thousand
		2nd quarter 2017					1st quarter 2017					2nd quarter 2016
		Total Unweighted Value		Total Weighted Value			Total Unweighted Value		Total Weighted Value			Total Unweighted Value		Total Weighted Value
		(average)(1)		(average)(2)			(average)(1)		(average)(2)			(average)(1)		(average)(2)
	High Quality Liquid Assets (HQLA)
1	Total High Quality Liquid Assets (HQLA)				185,287,400					187,468,595					177,534,502
	Cash outflows(3)
2	Retail deposits and deposits from small business customers, of which:		255,833,402		21,044,057			259,078,947		21,692,894			264,336,656		23,163,451
3	Stable deposits		130,364,694		3,944,853			127,986,838		3,872,467			115,892,790		3,504,185
4	Less stable deposits		125,468,709		17,099,204			131,092,109		17,820,427			148,443,866		19,659,266
5	Unsecured wholesale funding, of which:		141,438,494		67,179,352			137,172,774		63,224,546			147,412,833		68,957,511
6	Operational deposits (all counterparties) and deposits in networks of cooperative banks		2,258,714		68,794			1,857,987		55,794			1,858,989		55,770
7	Non-operational deposits (all counterparties)		137,112,788		65,043,566			133,371,886		61,225,852			143,742,217		67,090,114
8	Unsecured debt		2,066,992		2,066,992			1,942,901		1,942,901			1,811,627		1,811,627
9	Secured wholesale funding				3,730,196					2,615,402					331,178
10	Additional requirements, of which:		188,516,807		23,072,171			180,409,520		21,396,404			186,787,854		22,863,830
11	Outflows related to derivative exposure and other collateral requirements		15,086,132		6,575,995			13,770,336		6,914,947			20,445,309		11,500,060
12	Outflows related to loss of funding on debt products		4,408,353		4,408,353			4,318,985		3,349,237			95,516		95,516
13	Credit and liquidity facilities		169,022,322		12,087,823			162,320,199		11,132,219			166,247,029		11,268,254
14	Other contractual funding obligations		47,593,878		47,593,878			48,763,355		48,763,355			52,465,740		52,465,740
15	Other contingent funding obligations		82,689,708		8,191,542			79,666,774		9,080,381			87,238,060		8,047,446
16	Total cash outflows				170,811,197					166,772,982					175,829,156
	Cash inflows(3)
17	Secured lending		144,818,691		50,782			157,702,760		49,020			227,892,379		115,032
18	Inflows from fully performing exposures		30,158,349		16,389,135			29,674,762		16,294,618			32,902,905		17,148,731
19	Other cash inflows		70,794,755		62,492,051			70,219,902		61,528,824			73,103,033		65,219,624
20	Total cash inflows		245,771,795		78,931,968			257,597,424		77,872,462			333,898,317		82,483,387
				Adjusted Total(4)					Adjusted Total(4)					Adjusted Total(4)
21	Total HQLA				185,287,400					187,468,595					177,534,502
22	Total net cash outflows				91,879,229					88,900,520					93,345,769
23	LCR (%)				201.7	%				210.9	%				190.2	%

⁽¹⁾ Total balance of the cash inflows or outflows item.

⁽²⁾ After application of weighting factors.

⁽³⁾ Potential cash outflows (Outflows _e ) and inflows (Inflows _e ).

⁽⁴⁾ Amount calculated after applying weighting factors and limits set by BACEN Circular 3,749.

The table shows that Itaú Unibanco has an average LCR of 201.7% in the quarter, leading to the conclusion that the institution comfortably has sufficient liquid assets to endure more than 30 days in a period of idiosyncratic or systemic liquidity stress, as set forth by the metrics.

47

Itaú Unibanco

Risk and Capital Management – Pillar 3

8.3 Primary sources of funding

Itaú Unibanco has different sources of funding, with a significant portion arising from the retail segment.

Primary sources of funding																			R$ million
	06/30/2017							03/31/2017							06/30/2016
Funding	0 to 30 days		Total		%			0 to 30 days		Total		%			0 to 30 days		Total		%
Deposits		200,618		354,581		58	%		196,449		327,041		55	%		198,764		311,712		52	%
Demand deposits		65,453		65,453		11	%		62,598		62,598		11	%		60,664		60,664		10	%
Savings deposits		109,542		109,542		18	%		107,070		107,070		18	%		104,493		104,493		17	%
Time deposits		24,652		176,897		29	%		26,066		152,955		26	%		30,177		140,188		23	%
Other		971		2,689		0	%		715		4,418		1	%		3,430		6,367		1	%
Funds from acceptances and issuance of securities (1)		5,475		108,082		18	%		3,142		96,366		16	%		3,958		84,235		14	%
Funds from own issue (2)		1,532		92,237		15	%		1,984		118,447		20	%		2,775		145,516		24	%
Subordinated debt		1,004		52,104		9	%		151		53,226		9	%		96		60,282		10	%
Total		208,629		607,004		100	%		201,726		595,080		100	%		205,593		601,745		100	%

⁽¹⁾ Includes mortgage notes, real estate credit bills, agribusiness and financial credit bills recorded in interbank and institutional market debts and liabilities for issue of debentures and foreign borrowings and securities recorded in funds from institutional markets.

⁽²⁾ Refer to deposits received under securities repurchase agreements with securities from own issue.

48

Itaú Unibanco

Risk and Capital Management – Pillar 3

9 Other Risks

Insurance products, pension plans and premium bonds risks

Products that compose portfolios of insurance companies of Itaú Unibanco are related to life and elementary insurance, as well as pension plans and premium bonds. Accordingly, Itaú Unibanco understands that the main risks inherent to these products are:

· Underwriting Risk: possibility of losses arising from insurance products, pension plans and premium bonds that go against institution’s expectations, directly or indirectly associated with technical and actuarial bases used for calculating premiums, contributions and technical provisions;

· Market Risk;

· Credit Risk;

· Operational risk;

· Liquidity risk in insurance operations.

The descriptions of the risks above are presented in their respective chapters.

In line with good national and international practices and to ensure that risks arising from insurance products, pension plans and premium bonds are properly identified, measured, assessed, reported and approved in relevant forums, Itaú Unibanco has a risk management framework, whose guidelines are established in institutional guidelines, approved by the Board, applicable to companies and subsidiaries exposed at risk from insurance products, pension plans and premium bonds, in Brazil and abroad.

The process of risk management for insurance, pensions and premium bond plans is based on defined responsibilities distributed between the control and business areas, ensuring that they are independent of each other and focusing on the special nature of each risk, as per the guidelines established by Itaú Unibanco.

As part of the risk management process, there is a governance structure where decisions may be escalated to corporate bodies, thus ensuring compliance with several regulatory and internal requirements, as well as balanced decisions relative to risks.

The aim of Itaú Unibanco is to ensure that assets serving as collateral for long-term products, with guaranteed minimum returns, are managed according to the characteristics of the liabilities, so that they are actuarially balanced and solvent over the long term.

Each year, liabilities for long-term products, which result in projected future benefits flows, are mapped using actuarial assumptions. This mapping enables Asset Liability Management models to be created, and these are used to define the best composition of the asset portfolio to neutralize the risk of this type of product, taking into account their economic and financial viability over the long term. Portfolios of collateral assets are rebalanced periodically according to changes in market prices, the company’s liquidity requirements and the changes in the characteristics of the liabilities.

Social and Environmental Risk

Itaú Unibanco understands social and environmental risk as the risk of potential losses due to exposure to social and environmental events arising from the performance of its activities.

Mitigation actions of social and environmental risk are carried out through processes mappings, internal controls, monitoring new regulations on the subject, and recording occurrences in internal databases. In addition, risks identified, prioritized and actions taken are reported to Itaú Unibanco management of social and environmental risk.

The social and environmental risk management is carried out by the first line of defense in its daily operations, supplemented by a technical support of legal and risks control area, which has a team specialized in social and environmental management. Business units also have their governance for approval of new products, including assessing the social and environmental risk, which ensures compliance in all new products and processes employed by the institution. Governance also includes the Social and Environmental Risk Committee, which is primarily responsible for guide institutional views of social and environmental risk exposure related to Itaú Unibanco activities and operations.

Itaú Unibanco consistently seeks to evolve in the management of social and environmental risk, always attentive to the challenges so as to monitor the changes in and demands of society. Therefore, among other actions, Itaú Unibanco has assumed and incorporated into Itaú Unibanco’s internal processes a number of national and international voluntary commitments and pacts aimed at integrating social, environmental and governance aspects into Itaú Unibanco business.

49

Itaú Unibanco

Risk and Capital Management – Pillar 3

The main ones are the Principles for Responsible Investment (PRI), the Charter for Human Rights – Ethos, the Equator Principles (EP), the Global Impact, the Carbon Disclosure Project (CDP), the Brazilian GHG Protocol Program, the Pacto Nacional para Erradicação do Trabalho Escravo (National Pact for Eradicating Slave Labor), among others. Itaú Unibanco efforts to increase the knowledge of the assessment of the social and environmental criteria have been recognized as models in Brazil and abroad, as shown by the recurring presence of the institution in the major sustainability indexes abroad, such as the Dow Jones Sustainability Index, and recently, in Sustainability Index Euronext Vigeo – Emerging 70, and in Brazil, for example in the Corporate Sustainability Index, as well as the numerous prizes which Itaú Unibanco has been awarded.

Regulatory Risk

Regulatory risk is considered at Itaú Unibanco as the risk arising from losses due to fines, sanctions and other penalties applied by regulatory agencies resulting from noncompliance with regulatory requirements. The regulatory risk is managed through a structured process aimed at identifying changes in the regulatory environment, analyzing their impacts on the departments of the institution and monitoring the implementation of actions directed at adherence to the regulatory requirements.

Itaú Unibanco has a structured flow for addressing rules, covering the stages of recognition, distribution, monitoring and compliance, and all of these processes are established in internal policies. The flow for handling regulatory risk involves various areas of the institution, and consists of: (i) structure of lines of defense; (ii) monitoring of draft legislation, public notices and public hearings; (iii) monitoring of new rules and definition of action plans; (iv) relationship with regulators and professional organizations; (v) monitoring of action plans; (vi) control over compliance with legal decisions and TAC (conduct adjustment agreements), executed in public civil actions. In addition, the institution’s risks are classified and prioritized according to the Itaú Unibanco internal control methodology.

Model Risk

Itaú Unibanco’s risk management already has proprietary models for risk management that are continuously monitored, and reviewed whenever necessary, aiming at ensuring effectiveness in strategic and business decisions.

Model risk is defined as the risk that arises from the models used by Itaú Unibanco not reflecting, on a consistent basis, the relationships of variables of interest, creating results that systematically differ from those observed. This risk may materialize due to the use in different situations from those modeled or as a result of methodological inadequacies during their development. The best market practices are used to manage the modeling risks to which the institution is exposed during the entire lifetime of each model, whose steps may be classified into four main ones: development, implementation, validation and use. The best practices that mark the model risk control at the institution include: (i) certification of the quality of the database used; (ii) application of a check-list of essential steps to be taken during the development; (iii) conservatism in judgmental models (iv) use of external benchmarks; (v) approval of results generated in implementation; (vi) independent technical validation; (vii) validation of use; (viii) assessments of the impact in the use; (ix) monitoring of performance; and (x) monitoring of the distribution of the explanatory variables and final score.

Country Risk

Itaú Unibanco understands country risk as the risk of losses arising from noncompliance with the financial obligations in the terms agreed upon by borrowers, issuers, counterparties or guarantors as a result of actions taken by the government of the country where the borrower, issuer, counterparty or guarantor is located or of political, economic and social events related to that country.

Itaú Unibanco operates in many other countries in addition to Brazil. Additionally to the external units, Itaú Unibanco has a relationship with borrowers, issuers, counterparties and guarantors from many places in the world, regardless of whether Itaú Unibanco has an external unit in the place where the borrower, issuer, counterparty or guarantor is located.

In order to properly address the country risk, Itaú Unibanco has a specific structure for the management and control of country risk, consisting of corporate bodies and dedicated teams, with responsibilities defined in policies. The institution has a structured and consistent procedure for managing and controlling country risk, including :(i) establishment of country ratings; (ii) determination of limits for countries; (iii) monitoring of limits.

50

Itaú Unibanco

Risk and Capital Management – Pillar 3

Business and Strategy Risk

Itaú Unibanco understand the business and strategy risk as the risk of a negative impact on the results or capital as a consequence of a faulty strategic planning, the making of adverse strategic decisions, the inability of Itaú Unibanco to implement the proper strategic plans and/or changes in its business environment.

Since the business and strategic risk can directly affect the performance of the institution, Itaú Unibanco has implemented many mechanisms that ensure that both the business and the strategic decision-making processes follow proper governance standards, have the active participation of executives and the Board of Directors, are based on market, macroeconomic and risk information and are aimed at optimizing the risk-return ratio. Decision-making and the definition of business and strategy guidelines, count on the full engagement of the Board of Directors, primarily through the Strategy Committee, and of the executives, through the Executive Committee. In order to handle risk adequately, Itaú Unibanco has governance and processes to involve the ACGRF in business and strategy decisions, so as to ensure that risk is managed and decisions are sustainable in the long term. They are: (i) qualifications and incentives of board members and executives; (ii) budgetary process; (iii) product assessment; (iv) evaluation and prospecting of proprietary mergers and acquisitions; and (v) a risk appetite framework which, for example, restricts the concentration of credit and exposure to specific and material risks.

Reputational Risk

Itaú Unibanco understand reputational risk as the risk arising from internal practices, risk events and external factors that may generate a negative perception of the institution among clients, counterparties, stockholders, investors, supervisors, commercial partners, among others, resulting in impacts on the value of the brand and financial losses, in addition to adversely affecting Itaú Unibanco’s capability to maintain existing commercial relations, start new businesses and continue to have access to financing sources.

Itaú Unibanco believes that its reputation is extremely important for achieving its long-term goals and this is why the institution tries to align its speech with ethical and transparent practice and work, which is essential to raise the confidence of Itaú Unibanco’s stakeholders. Itaú Unibanco’s reputation depends on its strategy (vision, culture and skills) and derives from direct or indirect experience of the relationship between Itaú Unibanco and its stakeholders.

Since the reputational risk directly or indirectly permeates all operations and processes of the institution, Itaú Unibanco’s governance is structured in a way to ensure that potential reputational risks are identified, analyzed and managed still in the initial phases of its operations and analysis of new products.

The treatment given to reputational risk is structured by means of many processes and internal initiatives, which, in turn, are supported by internal policies, and their main purpose is to provide mechanisms for the monitoring, management, control and mitigation of the main reputational risks. Among them are (i) risk appetite statement; (ii) process for the prevention and fight against the use of Itaú Unibanco in unlawful acts; (iii) crisis management process and business continuity; (iv) processes and guidelines of the governmental and institutional relations; (v) corporate communication process; (vi) brand management process; (vii) ombudsman offices initiatives and commitment to customer satisfaction; and (vii) ethics guidelines and prevention of corruption.

Financial institutions play a key role in preventing and fighting illegal acts, in particular money laundering, terrorist financing and fraud, for which the challenge is to identify and suppress increasingly sophisticated operations that seek to conceal the origin, ownership and movement of goods and money derived from illegal activities.

Itaú Unibanco has introduced a corporate policy in order to prevent its involvement in illegal acts and to protect its reputation and image towards stakeholders, through a governance structure based on transparency, strict compliance with rules and regulations and cooperation with police and judicial authorities. It is also continuously aligned with local and international best practices for preventing and fighting against illegal acts, through investing and continuously training employees.

In compliance with the guidelines of this corporate policy, Itaú Unibanco established a program to prevent and fight against illegal acts based on the following pillars:

· Client Identification Process;

· Know Your Client (KYC) Process;

· Know Your Partner (KYP) Process;

· Know Your Supplier (KYS) Process;

· Know Your Employee (KYE) Process;

· Assessment of New Products and Services;

· Monitoring of Transactions;

51

Itaú Unibanco

Risk and Capital Management – Pillar 3

· Reporting Suspicious Transactions to the Regulatory Bodies; and

· Training and Awareness Raising.

This program applies to the entire institution, including subsidiaries and affiliates in Brazil and abroad. Governance on preventing and combating unlawful acts is carried out by the Board of Directors and corporate bodies. The document that presents the guidelines established in the program to prevent and combat unlawful acts may be seen on the www.itau.com.br/investor-relations website in the section Corporate Governance, Regulations and Policies, corporate policy to prevent and fight against unlawful acts.

In addition to the program to prevent, detect and fight against unlawful acts, Itaú Unibanco is committed to protecting corporate information and ensuring the privacy of clients in any operations. To this end, Itaú Unibanco is guided by the Information Security Corporate Policy whose purpose is to ensure the application of the principles and guidelines for the protection of information and intellectual property of the organization, clients and general public.

To ensure that the processed information is properly protected, Itaú Unibanco has a monitoring process and a control structure that covers technology, business areas and international units, adhering to principal regulatory bodies and external audits, and best market practices and certifications. Additionally, a Security Operation Center (SOC) that works 24/7 contributes to the cyber security of Itaú Unibanco’s electronic channels and IT infrastructure, the monitoring of operations and thus minimization of the risk of a security incident.

Awareness raising campaigns to prevent corruption, money laundering, fraud, leaks of information and other unlawful acts are regularly carried out through the many communication channels existing with Itaú Unibanco´s employees. The actions include lectures, campaigns and in-person training and e-learning courses on many topics. Besides lectures and campaigns, Itaú Unibanco offers a website with guidelines on security in the digital and physical world, for the general public.

52

Itaú Unibanco

Risk and Capital Management – Pillar 3

10 Enterprise Risk Management and Alignment of Incentives

In accordance with the scope and complexity of its operations, Itaú Unibanco established processes for effectively identifying, assessing, monitoring and controlling risks, besides adequately allocating the capital to segments. In addition, Itaú Unibanco established processes, enabling Executives and Board of Directors to hold a global view about the institution´s risk exposures, as well as a prospective view about the adequacy of its capital, besides promoting the alignment of incentives. Some of these processes are described below:

Stress Testing

The stress testing performed by Itaú Unibanco is aimed at evaluating the solvency of the institution in hypothetical but possible events of systemic crises, as well as identifying areas that are more susceptible to stress impact that may undergo risk mitigation.

Since 2010, Itaú Unibanco has a process for simulating the results of extreme economic and market conditions on the institution’s income and capital.

For the purposes of the test, the economic research area estimates macroeconomic variables for each stress scenario. The scenarios are defined according to their importance for the institution results and the likelihood of their occurrence, and they are submitted annually to the Board of Directors for approval.

Projections for the macroeconomic variables (such as GDP, the basic interest rate and inflation) and for variables in the credit market (such as raisings, lending, rates of default, margins and charges) used in these scenarios are based on exogenous shocks or through use of models validated by an independent area.

The projections calculated influence budgeted results and balance sheets, and so also affect risk-weighted assets and capital and liquidity ratios.

This information enables potential risk factors in the business to be identified, and provides support for the strategic decisions of the Board of Directors, the budgeting and risk management process, as well as serving as an input for measuring risk appetite.

Risk-adjusted Compensation

The Compensation guidelines of Itaú Unibanco are aimed at attracting, retaining and compensating on merit its employees, encouraging prudent risk exposure levels in short-, medium- and long-term strategies, in line with the interests of its shareholders and regulatory authorities and line with the institution’s culture. The Compensation Committee, in accordance with the CMN Resolution No. 3,921 and reporting to the Board of Directors is responsible for setting out the guidelines on models of compensation to employees and the policy on compensation of management members of the Itaú Unibanco companies.

Compensation at Itaú Unibanco takes into account the strategy of the institution, the general and specific legislation that should be adopted for each business or region of operation, and the adequate risk management over time. Variable compensation considers the current and potential risks, giving incentive to the achievement of sustainable results and discouraging decisions that involve excess risks. The calculation of the aggregate and individual amounts considers, among others, long-term sustainable financial bases, adjustments to future payments in view of assumed risks, the results of the institution and/or of the area, when applicable, and the ratio between performance and risks incurred.

In accordance with the CMN Resolution 3,921, a portion of the variable compensation of statutory officers is paid in stocks (at least 50%) and a percentage is deferred for three years (at least 40% of variable compensation). The deferred and unpaid portions must be reversed in case the institution has an unsatisfactory performance and the business unit has a negative performance.

Reflecting its concern with sustainable performance, Itaú Unibanco implements specific variable compensation practices for employees which roles and responsibilities have material impact on the risk of the institution, although they are not subject to the requirements of CMN Resolution 3,921. For such employees, mechanisms are provided for making adjustments to bonus arising from compliance and risk as well as deferral events.

For more information about remuneration in Itaú Unibanco, see Note 16 – “Shareholders’ Equity” in the complete Financial Statements, which are shown on the website www.itau.com.br/investor-relations.

53

Itaú Unibanco

Risk and Capital Management – Pillar 3

11 Appendix I

	Breakdown of the Total Capital and Information on its adequacy	06/30/2017
		Value			Temporary Treatment		Balance
		(R$ Thousand)			(R$ Thousand)		Sheet Reference
	Common Equity Tier I: instruments and reserves
1	Instruments Eligible for the Common Equity Tier I		97,148,000			-	(k)
2	Revenue reserves		26,564,083			-	(l)
3	Other revenue and other reserve		(611,322	)		-	(m)
4	Instruments that are authorized to compose the Common Equity Tier Ibefore Resolution No. 4,192 of 2013 comes into effect
5	Non-controlling interest in consolidated subsidiaries, non-deductible from the Common Equity Tier I¹		11,327,531			104,564	(j)
6	Common Equity Tier I before prudential adjustments		134,428,292			-
	Common Equity Tier I: prudential adjustments
7	Prudential adjustments related to the pricing of financial instruments		410,884			-
8	Goodwill paid upon the acquisition of investments based on the expectation of future profitability		8,743,745			2,185,936	(e)
9	Intangible assets		5,717,921			1,114,473	(h) / (i)
10	Tax credits arising from income tax losses and social contribution tax loss carryfowards and those originating from this contribution related to determination periods ended until December 31, 19982		5,877,190			1,469,298	(b)
11	Adjustments related to the market value of derivative financial instruments used to hedge the cash flows of protected items whose mark-to-market adjustments are not recorded in the books.		(1,575,157	)		-
12	Downward difference between the amount recognized as a provision and the expected loss for institutions using the IRB		-			-
13	Gains arising from securitization operations
14	Gains or losses arising from the impact of changes on the credit risk of the institution on the fair value assessment of liability items
15	Actuarial assets related to defined benefit pension funds		126,114			31,529	(d)
16	Shares or other instruments issued by the bank authorized to compose the Common Equity Tier I, acquired directly, indirectly or synthetically		2,571,065			-	(n)
17	Investments crossed with instruments eligible for the Common Equity Tier I
18	Added value of investments lower than 10% of the capital of non-consolidated companies that are similar tofinancial institutions, insurance companies, reinsurance companies, capitalization companies and sponsoredpension fund entities, that exceeds 10% of the amount of the Common Equity Tier I, disregarding specificdeductions		-			-
19	Investments higher than 10% of the capital of non-consolidated companies that are similar to financial institutions, insurance companies, reinsurance companies, capitalization companies and sponsored pensionfund entities		-			-
20	Mortgage servicing rights
21	Tax credits arising from temporary differences that depend on the generation of income or future taxableincome for their realization, above the limit of 10% of the Common Equity Tier I, disregarding specificdeductions		-			-
22	Amount that exceeds 15% of the Common Equity Tier I		-			-
23	of which: arising from investments in the capital of non-consolidated companies that are similar to financial institutions, insurance companies, reinsurance companies, capitalization companies and open ended pensionentities		-			-
24	of which: arising from mortgage servicing rights
25	of which: arising from tax credits resulting from temporary differences that depend on the generation of income or future taxable income for their realization		-			-
26	National regulatory adjustments		(1,259,586	)		-
26.a	Deferred permanent assets		444			-	(g)
26.b	Investment in consolidated dependence, financial institution abroad or non-financial entity, with respect towhich the Central Bank of Brazil does not have access to information, data and documents		-			-
26.c	Funding instruments eligible for the Common Equity Tier I issued by a non-consolidated institution that isauthorized to operate by the Central Bank of Brazil or by a non-consolidated financial institution abroad		-			-
26.d	Increase of unauthorized capital		-			-
26.e	Excess of the amount adjusted of Common Equity Tier I		-			-
26.f	Deposit to cover capital deficiency		-			-
26.g	Amount of intangible assets established before Resolution No. 4,192 of 2013 comes into effect		1,260,030			-	(i)
26.h	Excess of resources invested on permanent assets		-			-
26.i	PR emphasis		-			-
26.j	Other residual differences concerning the Common Equity Tier I calculation methodology for regulatorypurposes		-			-
27	Regulatory adjustments applied to the Common Equity Tier I due to the Insufficiency of Additional Capital andTier II Capital to cover deductions		-			-
28	Total regulatory deductions from the Common Equity Tier I		20,612,176
29	Common Equity Tier I		113,816,116

1 - Considers prudential adjustments corresponding to deduction of non-controlling interest. 

2 - Considers the deduction of deferred tax liabilities.

3 - Calculated according to article 9 of Bacen Resolution No. 4,192.

4 - Calculated according to article 29 of Resolution No. 4,192.

54

Itaú Unibanco

Risk and Capital Management – Pillar 3

	Breakdown of the Total Capital and Information on its adequacy	06/30/2017
		Value		Temporary Treatment		Balance
		(R$ Thousand)		(R$ Thousand)		Sheet Reference
	Additional Tier I Capital: instruments
30	Instruments eligible for the Additional Tier I Capital		-		-
31	of which: classified as Common Equity Tier I in accordance with the accounting rules		-		-
32	of which: classified as liabilities in accordance with the accounting rules		-		-
33	Instruments that are authorized to compose the Additional Tier I Capital before Resolution No. 4,192 of 2013comes into effect		-		-
34	Non-controlling interest in consolidated subsidiaries, non-deductible from the Additional Tier I Capital³		49,446		12,361
35	of which: instruments issued by subsidiaries before Resolution No. 4,192 of 2013 comes into effect		-		-
36	Additional Tier I Capital before regulatory deductions		49,446		-
	Additional Tier I Capital: regulatory deductions
37	Shares or other instruments issued by the bank authorized to compose the Additional Tier I Capital, acquireddirectly, indirectly or synthetically		-		-
38	Investments crossed with instruments eligible for the Additional Tier I Capital
39	Added value of investments lower than 10% of the capital of non-consolidated institutions authorized tooperate by the Central Bank of Brazil or by a financial institution abroad and that exceeds 10% of the amount ofthe Additional Tier I Capital		-
40	Investments higher than 10% of the capital of non-consolidated institutions authorized to operate by theCentral Bank of Brazil or by a financial institution abroad		-
41	National regulatory adjustments		-		-
41.a	Added value of investments lower than 10% of the capital of non-consolidated institutions authorized to operateby the Central Bank of Brazil or by a financial institution abroad and do not exceeds 10% of the amount of the Additional Tier I Capital		-		-
41.b	Non-controlling interest in Additional Tier I Capital		-		-
41.c	Other residual differences concerning the Additional Tier I Capital calculation methodology for regulatorypurposes		-		-
42	Regulatory adjustments applied to the Additional Tier I Capital due to the insufficiency of Tier II Capital to coverdeductions		-		-
43	Total regulatory deductions from the Additional Tier I Capital		-		-
44	Additional Tier I Capital		49,446		-
45	Tier I		113,865,562		-
	Tier II: instruments
46	Instruments eligible for Tier II Capital		-		-
47	Instruments that are authorized to compose Tier II Capital before Resolution No. 4,192 of 2013 comes intoeffect4		19,722,563		19,722,563
48	Non-controlling interest in non-consolidated subsidiaries, non-deductible from Tier II Capital³		65,928		16,482
49	of which: instruments issued by subsidiaries before Resolution No. 4,192 of 2013 comes into effect		-		-
50	Excess of provisions with respect to the loss expected in IRB		-		-
51	Tier II before regulatory deductions		19,788,491		-
	Tier II: regulatory deductions
52	Shares or other instruments issued by the bank authorized to compose Tier II Capital, acquired directly,indirectly or synthetically		-		-
53	Investments crossed with instruments eligible for Tier II Capital
54	Added value of investments lower than 10% of the capital of non-consolidated institutions authorized tooperate by the Central Bank of Brazil or non-consolidated financial institution abroad and that exceeds 10% ofthe amount of Tier II Capital		-
55	Investments higher than 10% of the capital of non-consolidated institutions authorized to operate by theCentral Bank of Brazil or non-consolidated financial institution abroad		-
56	National regulatory adjustments		-		-
56.a	Funding instruments issued by a non-consolidated institution that is authorized to operate by the Central Bankof Brazil or by a non-consolidated financial institution abroad, limited to the instruments held by third partiesand issued until December 31, 2012		-		-
56.b	Non-controlling interest in Tier II		-		-
56.c	Other residual differences concerning Tier II calculation methodology for regulatory purposes		-		-
57	Total regulatory deductions from Tier II Capital		-		-
58	Tier II		19,788,491
59	Total Capital (Tier I + Tier II)		133,654,053
60	Total risk-weighted assets		724,483,088

1 - Considers prudential adjustments corresponding to deduction of non-controlling interest.

2 - Considers the deduction of deferred tax liabilities.

3 - Calculated according to article 9 of Bacen Resolution No. 4,192.

4 - Calculated according to article 29 of Resolution No. 4,192.

55

Itaú Unibanco

Risk and Capital Management – Pillar 3

	Breakdown of the Total Capital and Information on its adequacy	06/30/2017
		Value			Temporary Treatment		Balance
		(R$ Thousand)			(R$ Thousand)		Sheet Reference
	Capital Ratios and Common Equity Tier I buffers
61	Common Equity Tier 1		15.7	%
62	Tier I Ratio		15.7	%
63	Total Capital Ratio		18.4	%
64	Common Equity Tier I minimum requirement, including capital buffers (% of RWA)		6.0	%
65	of which: conservation capital buffer		1.25	%
66	of which: countercyclical capital buffer		0.0	%
67	of which: capital buffer for institutions that are systemically important at global level (G-SIB)
68	Common Equity Tier I allocated to meet the requirement for capital buffers (% of RWA) 5		1.5	%
	National Minimum
69	Common Equity Tier I Ratio, if different from that established in Basel III
70	Tier I Ratio, if different from that established in Basel III		6.0	%
71	Capital Ratio, if different from that established in Basel III		9.25	%
	Amounts below the limit for deduction (non-weighted by risk)
72	Added value of investments lower than 10% of the capital of non-consolidated companies that aresimilar to financial institutions, insurance companies, reinsurance companies, capitalization companiesand sponsored pension fund entities		58,430
73	Investments higher than 10% of the capital of non-consolidated companies that are similar to financialinstitutions, insurance companies, reinsurance companies, capitalization companies and sponsoredpension fund entities		10,367,513				(f) / (a)
74	Mortgage servicing rights
75	Tax credits arising from temporary differences, not deducted from the Common Equity Tier I 2		2,720,005				(c)
	Limits to the inclusion of provisions in Tier II
76	Generic provisions eligible for the inclusion in Tier II Capital related to exposures subject to thecalculation of the capital requirement by means of a standardized approach
77	Limit for the inclusion of generic provisions in Tier II Capital for exposures subject to the standardizedapproach
78	Provisions eligible for the inclusion in Tier II Capital related to exposures subject to the calculation ofthe capital requirement by means of the IRB approach (before the application of the limit)		-
79	Limit for the inclusion of provisions in Tier II Capital for exposures subject to the IRB approach		-
	Instruments authorized to compose the Total Capital before Resolution No. 4,192 of 2013 comes intoeffect (applicable between October 1, 2013 and January 1, 2022)
80	Current limit for instruments that are authorized to compose the Common Equity Tier I beforeResolution No. 4,192 of 2013 comes into effect
81	Amount excluded from the Common Equity Tier I due to the limit
82	Instruments that are authorized to compose the Additional Tier I Capital before Resolution No. 4,192 of2013 comes into effect		-			-
83	Amount excluded from the Additional Tier I Capital due to the limit		-			-
84	Instruments that are authorized to compose Tier II Capital before Resolution No. 4,192 of 2013 comesinto effect4		19,722,563			-
85	Amount excluded from Tier II Capital due to the limit4		19,722,563			-

1 - Considers prudential adjustments corresponding to deduction of non-controlling interest.

2 - Considers the deduction of deferred tax liabilities.

3 - Calculated according to article 9 of Bacen Resolution No. 4,192.

4 - Calculated according to article 29 of Resolution No. 4,192.

5 - Includes Common Equity Tier I buffer of systemic importance, whose requirement corresponds to 0.25%.

56

Itaú Unibanco

Risk and Capital Management – Pillar 3

12 Glossaries

12.1 Glossary of Acronyms

A

· AVA - Avaliação de Vulnerabilidades e Ameaças (Threats and Vulnerabilities Analysis)

B

· BACEN - Banco Central do Brasil (Central Bank of Brazil)

· BIA - Business Impact Analysis

· BIS - Bank for International Settlements

· BRL - Brazilian Real

C

· CCB – Cédula de Crédito Bancário

· CDB - Certificado de Depósito Bancário (Bank Deposit Certificate)

· CDI - Certificado de Depósito Interfinanceiro (Interbank Deposit Certificate)

· CDS - Credit Default Swap

· CMN - Conselho Monetário Nacional (National Monetary Council)

· CNSP - Conselho Nacional de Seguros Privados (National Council of Private Insurance)

· CRA – Certificados de Recebíveis do Agronegócio (Agribusiness Receivables Certificate)

· CRI - Certificados de Recebíveis Imobiliários (Securitized Real Estate Loans)

· CVM - Securities and Exchange Commission

· Comef - Financial Stability Committee (Comitê de Estabilidade Financeira)

D

· DV01 - Delta Variation Risk

F

· FIDC - Fundo de Investimento em Direitos Creditórios (Credit Rights Investment Funds)

· FII – Fundo de Investimento Imobiliário (Real Estate Investiment Fund)

· FPRs - Fatores de Ponderação de Riscos (weighting factor)

G

· GDP - Gross Domestic Product

· G-SIBs - Global Systemically Important Banks

H

· HQLA – High quality liquid assets

I

· ICAAP - Internal capital adequacy assessment process

· IGPM – Índice Geral de Preços do Mercado (Brazilian consumer index)

· IPCA - Índice de Preço ao Consumidor Amplo (Brazilian consumer index)

· IPV – Independent Price Validation

· IT - Information Technology

L

· LCR – Liquidity Coverage Ratio

M

· MEP - Equity Method

· MtM - Mark to Market

57

Itaú Unibanco

Risk and Capital Management – Pillar 3

P

· PCN - Planos de Continuidade de Negócios (Business Continuity Plans)

· PR - Patrimônio de Referência (Total Capital)

· PREVIC - Superintendência Nacional de Previdência Complementar (National Superintendence of Supplementary Pension)

R

· RA - Risk Assessment

· RBAN - Total Capital calculated for covering the interest rate risk of trades of the Banking Portfolio

· RCAP - Regulatory Consistency Assessment Programme

· RCP - Risco de Crédito Potencial (Potential Credit Risk)

· RWA - Risk Weighted Asset

· RWA_CPAD - Portion relating to exposures to credit risk

· RWA_MINT - Portion relating to exposures to market risk, using internal approach

· RWA_MPAD - Portion relating to exposures to market risk, calculated using standard approach

· RWA_OPAD - Portion relating to the calculation of operational risk capital requirements

S

· SOC - Security Operation Center

· SUSEP - Superintendência de Seguros Privados (Superintendence of Private Insurance)

T

· TAC - Termo de Ajustamento de Conduta (Conduct Adjustment Agreements)

· TRS - Total Return Swap

· TR - Taxa Referencial (Referential Rate)

· TVM - Títulos de valores mobiliários (Securities)

V

· VaR - Value at Risk

58

Itaú Unibanco

Risk and Capital Management – Pillar 3

12.2 Glossary of Regulations

· BACEN Circular No. 3,354, of June 27^th, 2007

· BACEN Circular No. 3,547, of July 07^th, 2011

· BACEN Circular No. 3,634, of March 04^th, 2013

· BACEN Circular No. 3,639, de of March 04^th, 2013

· BACEN Circular No. 3,640, of March 04^th, 2013

· BACEN Circular No. 3,641, of March 04^th, 2013

· BACEN Circular No. 3,644, of March 04^th, 2013

· BACEN Circular No. 3,645, of March 04^th, 2013

· BACEN Circular No. 3,646, of March 04^th, 2013

· BACEN Circular No. 3,647, of March 04^th, 2013

· BACEN Circular No. 3,674, of October 31^st, 2013

· BACEN Circular No. 3,678, of October 31^st, 2013

· BACEN Circular No. 3,701, of March 13^th, 2014

· BACEN Circular No. 3,748, of February 26^th, 2015

· BACEN Circular No. 3,749, of March 05^th, 2015

· BACEN Circular No. 3,751, of March 19^th, 2015

· BACEN Circular No. 3,768, of October 29^th, 2015

· BACEN Circular No. 3,769, of October 29^th, 2015

· BACEN Circular No. 3,809, of August 25^th, 2016

· BACEN Circular Letter No. 3,775 of July 14^th, 2016

· BACEN Circular Letter No. 3,774 of July 14^th, 2016

· BACEN Circular Letter No. 3,782 of September 19^th, 2016

· CNSP Resolution No. 321, of July 15^th, 2015

· CMN Resolution No. 3,380 of June 29^th, 2006

· CMN Resolution No. 3,444, of February 28^th, 2007

· CMN Resolution No. 3,464, of June 26^th, 2007

· CMN Resolution No. 3,533 of January 31^st, 2008

· CMN Resolution No. 3,721 of April 30^th, 2009

· CMN Resolution No. 3,921, of November 25^th, 2010

· CMN Resolution No. 3,988 of June 30^th, 2011

· CMN Resolution No. 4,090, of May 24^th, 2012

· CMN Resolution No. 4,192, of March 1^st, 2013

· CMN Resolution No. 4,193, of March 1^st, 2013

· CMN Resolution No. 4,195, of March 1^st, 2013

· CMN Resolution No. 4,280, of October 31^st, 2013

· CMN Resolution No. 4,512, of July 28^th, 2016

· CMN Resolution No. 4,557, of February 23^rd, 2017

59

Itaú Unibanco